Proposed Changes to Accounting and Disclosures of Pending Litigation Are Dropped

In July 2012, the Financial Accounting Standards Board (FASB) voted to drop a controversial project that would have required companies to disclose more about contingent losses, including most notably those arising from litigation.

The now-withdrawn proposal would have required significant additional disclosure of litigation. The vast majority of those commenting on the proposal opposed it, many with strenuous objection.

This article summarizes the reasons why the proposal was dropped, and provides additional perspective.

 

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