Excess Lease Liability and Insolvency

Based on SFAS 5 and in the author's opinion, a law firm's excess lease liability is not an event or item that should be included as a liability for purposes of determining insolvency or for financial statements issued in compliance with generally accepted accounting principles.

16 minute read January 30, 2009 at 09:38 AM
By
Stephen M. (pete) Peterson
Excess Lease Liability and Insolvency

With the recent failures of Heller Ehrman, Thelen Reid & Priest, and Thacher Proffitt & Wood, we may expect someone to raise the obscure issue of excess lease liability in determining when a firm is considered insolvent.

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