Talking the Talk Y2K

Journal of Accountancy, November 1998 | Go to article overview

Talking the Talk Y2K


What needs to done and who knows how to do it are still valid questions about the year 2000 issue. And Congress is taking a step toward these solutions with a bill, HR 4455, introduced by Congressman David Dreier R-Calif.). The proposed Year 2000 Readiness Disclosure Act does not mandate, or even offer, solutions. Rather, it is designed to encourage companies--by protecting them from potential lawsuits --to make statements about how the Y2K problem will affect them. Said Dreier, in introducing the bill, it "gives companies the liability protection they need to make statements about year 2000 compliance efforts, knowing that they're not just pouring gasoline onto some litigation bonfire"

The bill basically says that unless a company knowingly makes a false statement, its Y2K readiness disclosure is not admissible in a lawsuit. The bill also recognizes the Web as a venue for issuing statements about Y2K readiness: "In any covered action in which the adequacy of notice about year 2000 processing is at issue, and except as provided by contract, the posting of a notice by the entity purporting to have provided such notice on that entity's year 2000 Internet Web site shall be presumed to be an adequate mechanism for providing such notice. …

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