Proposed Loss Contingency Standard will not
Apply to Calendar Year-end Filers' 2010 Form 10-Ks

October 27, 2010

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


If you have questions regarding this newsflash, please contact any of the lawyers listed below or your regular Davis Polk contact.

Julia K. Cowles650 752
Alan Dean212 450
Charles S. Duggan212 450
Lowell Gordon Harriss212 450
Janice Brunner212 450


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