comfort letter

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comfort letter

a letter in business matters written to assure another party of the writer's intentions. It is essentially not supposed to be binding in law but can allow negotiations or commerce to continue. Examples are in relation to contract negotiations and in relation to the absence of permissions from local authorities.

A special instance is a communication from the commission of the European Union to the effect that an agreement submitted for an exemption under Article 81 (formerly Article 85) of the competition law does not infringe Article 81 or that if it does infringe Article 81 it still qualifies for an exemption. Following such a communication, the Commission will normally close its dossier. Comfort letters must be taken into account by national courts as important ‘indications’. A comfort letter rejecting the complaint and closing the file maybe the subject of an action since they have the content and effect of a decision.

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The AICPA Financial Reporting Center has a technical practice aid relating to comfort letters, which is available at tinyurl.com/ya793djm.
A special unit established by the PSNI is reviewing the cases of 228 who were sent controversial "comfort letters"under the scheme.
Comfort letters are available in very limited circumstances where the EPA provides a measure of "comfort" by providing a letter to an interested party explaining the potential or actual involvement EPA may seek.
EPA also sends "comfort letters" detailing the history and status of a site to interested alternative energy developers and investors who request information.
The findings, by the International Consortium of Investigative Journalists, are based on a trove of leaked documents that included 548 so-called comfort letters that the group said Luxembourg had provided to corporations seeking favorable tax treatment.
FORMER Northern Ireland secretary Peter Hain may have been economical with the truth over "comfort letters" issued to so-called on-the-runs, the deputy leader of the Democratic Unionist Party claimed yesterday.
He signed off Gresham Ltd accounts as well as providing "comfort letters" to victims of the fraud.
In prior liaison meetings, TEI has voiced concern about the increasing time lag between the issuance of comfort letters and the adoption of remedial technical legislation.
In answers which often frustrated the Committee members, the firm said it was not required to specifically audit liquidity risks and merely provided so-called "comfort letters" in relation to Northern Rock's funding transactions.
In answers which often frustrated the committee members, the firm said it was not required to specifically audit liquidity risks and merely provided socalled "comfort letters" in relation to Northern Rock's funding transactions.
While the audit of the historical financial statements remains the most visible service in this process provided by an accounting firm, CPAs also play an active role in the review of filing and disclosure documents, issuance of comfort letters to underwriters, future compliance with Sarbanes-Oxley Sec.