Corporate Governance

FASB Proposes Expanded Disclosures Regarding Loss Contingencies

By Harvard Law School Program on Corporate Governance

The Financial Accounting Standards Board (FASB) proposes to "retain" existing disclosures and "enhance them with additional information" by updating the requirements in what is now known as FASB Accounting Standards Codification Topic 450 (formerly Statement of Financial Accounting Standards No. 5) (ASC 450) for disclosure of certain loss contingencies. [1] The FASB?s proposal is the culmination of an extended study following its 2008 proposal to amend the standards regarding loss contingencies.

The prior proposal would have expanded vastly the disclosures required by US issuers, particularly with respect to litigation loss contingencies, and generated significant comments and debate as to whether, among other concerns, the expanded disclosures would have infringed upon the attorney-client privilege and work product protections. [2]

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Full post as published by The Harvard Law School Corporate Governance Blog on August 26, 2010 (boomark / email).