U5 Judgement Case

U5 Judgement Case - In th March 2012 meting of Valleck...

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In th March 2012 meting of Valleck Corporation's board of directors, a question arse as to the way a possbile obligation should be disclosed in the forthcoming financial statements for the year ended December 31. A Veteran board member brough to the meeting a draft of a disclosure note that had been repared by the controllor's Office for inclusion in the annual report. Here is the note: On May 9, 2011, the United Statse Environmental Protection Agency(EPA) issued a Notice of Violation (NOV) to Valleck alleging violations of the Clean Air Act. Susequently, in June 2011, the EPA commenced a civil action with respect to the foregoing violation seeking civil penalties of approximately $853,000. The EPA aleges that Valleck exceeded applicable volatile organic substance emission limites. The company estimates that the cost to achieve
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compliance wil be $190,000. in addition the company expects to settle the EPA lawsuit for a civil penalty of $205,000 which will be paid in 2014. "Where did we get the
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U5 Judgement Case - In th March 2012 meting of Valleck...

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