Environmental financial disclosure. (Responsible Care)

Chemical Week, December, 1993 by Plishner, Emily S.

Financial Accounting Standard 5, the rule that governs financial disclosure of environmental liabilities, does not specifically refer to environmental liabilities but does refer to any contingency, including lawsuits. Task forces from the Financial Accounting Standards Board and the American Institute of Certified Public Accountants may recommend a more specific interpretation or a new standard. Important issues in environmental liability and financial disclosure are discussed.

Past environmental mistakes can be costly to clean up, but even after a problem is identified it may be difficult to quantify the cost to remedy it. Nonetheless, the rule governing financial disclosure of environmental liabilities in the U.S. is Financial Accounting Standard 5 (FAS 5): "An...

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