On July 9, 2012, the Financial Accounting Standards Board (FASB) voted against moving forward with its exposure draft project to modify the accounting and disclosure requirements for loss contingencies. The exposure draft was part of the FASB's attempt to establish an overarching framework designed to make financial statement disclosure more effective, coordinated and less redundant. At its July 9 meeting, the FASB considered two alternatives:
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remove the loss contingency project from the FASB’s agenda
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continue to explore moderate changes to the loss contingency requirement
Ultimately the FASB staff recommended the board remove the project from its agenda. The majority agreed that current requirements in place under Accounting Standards Codification Topic 450 are sufficient. Further, the majority reasoned that addressing concerns with the adequacy of loss contingency disclosure is not an issue of standard-setting, but rather it is an issue of compliance and enforcement.
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