Comments Received on the Proposed Amendments to FASB Statement No. 5: Disclosure of Certain Loss Contingencies
The Financial Accounting Standards Board (the "FASB") has issued an Exposure Draft of proposed amendments to Financial Accounting Standards Statement No. 5 Accounting for Contingencies ("FAS 5"), which establishes accounting and reporting standards for certain contingencies, including pending or threatened litigation, claims and assessments. The Exposure Draft amendments increase the disclosure requirements for loss contingencies that would be recognized as liabilities in a statement of financial position, and for other contingencies that meet the criteria for loss contingencies as set forth in the amended FAS 5. This memo discusses the current disclosure requirements of FAS 5, the proposed amendments and a summary of several of the issues and concerns expressed with respect to the proposed amendments, as set forth in comment letters received by the FASB.