Governing Disclosure Of Loss Contingencies


Law360, New York (October 14, 2010) -- Investors have expressed concern in recent years about the adequacy of companies’ financial statement disclosures of nonfinancial loss contingencies, including claims arising from litigation. In response to this criticism, the Financial Accounting Standards Board (FASB) undertook a project to improve disclosure requirements and guidance in this area.

The FASB’s initial exposure draft was issued in June 2008 and, after extensive comments and roundtable discussions, the revised draft was issued in July 2010.[1] The stated objective was to require sufficient qualitative and quantitative information about loss contingencies to enable users of financial statements to understand the nature of the loss contingencies as well as their potential magnitude and timing.

The comment period for the revised draft expired Sept. 20, 2010; 320 comment letters were submitted, many of which indicated that the revised draft may still be problematic in a number of areas. Below are five issues that, based upon comment letters to the FASB, appear to be of special concern to lawyers and accountants.

Please see full article below for more information.

LOADING PDF: If there are any problems, click here to download the file.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Sutherland Asbill & Brennan LLP | Attorney Advertising

Written by:


Sutherland Asbill & Brennan LLP on:

Popular Topics
Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:

Sign up to create your digest using LinkedIn*

*By using the service, you signify your acceptance of JD Supra's Privacy Policy.

Already signed up? Log in here

*With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name. Or, sign up using your email address.