Chapter: Disclosure Of Loss Contingencies — FASB Moving Slowly On Smaller Scale

April 30, 2010Articles Practising Law Institute
On June 5, 2008, the Financial Accounting Standards Board (“FASB”) issued a proposed amendment to Financial Accounting Standard 5 and 141(R) (“FAS 5” and FAS 141(R)”) designed to require substantially more robust disclosures about contingent losses, including pending and threatened claims and environmental liabilities. The proposal struck a nerve. Two hundred and forty two comment letters were submitted on the proposal; 201 opposed it, including each of the twenty law firms that made submissions. Almost two years later, the proposal is still on the FASB’s agenda, not abandoned, but moving slowly and substantially scaled back.