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At its open meeting today, the FASB advised that calendar year-end companies will not be required to comply with the FASB's proposed new loss contingency disclosure standards in their 2010 Form 10-Ks. The FASB indicated that it does plan to conduct redeliberations on the proposed standard at a future meeting.
The FASB first proposed amendments to its loss contingency disclosure standards in July 2008. Its first proposal met significant opposition due to concerns that it would require disclosure of information that could be prejudicial in litigation. In July 2010, the FASB proposed a revised new loss contingency standard which it had planned to finalize by year-end but commenters voiced the same concerns about this new proposal—mainly that the new standard would require the disclosure of prejudicial information.
See the Davis Polk memorandum discussing the FASB's proposal on loss contingency disclosure
See the comment letters on the FASB's most recent loss contingency proposal
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