Drugmakers protest plan on legal costs
Six leading drugmakers sent a letter Friday to U.S. accounting-rule lawmakers objecting to a proposed rule that would require companies to disclose estimate costs of all continuing litigation, the Wall Street Journal said Tuesday.
According to Pfizer Inc, Merck & Co Inc, Eli Lilly & Co, Johnson & Johnson, Novartis AG and Wyeth, providing such an estimate would be futile, costly and unlikely to provide meaningful information for investors, the paper said.
The six drugmakers want the Financial Accounting Standards Board (FASB), the agency that sets U.S. accounting rules, to withdraw the proposed rule, the Journal said.
In a letter of the FASB, the companies said estimating the costs of continuing litigation was "highly subjective, subject to huge swings as underlying assumptions change, and unlikely to provide financial statement users with meaningful or reliable information."
The FASB had, in June, issued the proposed rule, which if approved, would be effective for fiscal years ending after December 15, 2008 and interim and annual periods in subsequent fiscal years.
Source:Reuters
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Posted by Axxa News Team
on Aug 12 2008. Filed under Business, News.
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