The US Financial Accounting Standards Board
(FASB) has proposed amendments to accounting standards that are
intended to introduce more clarity to the disclosure of certain
loss contingencies for public and non-public entities.
The FASB said the amendments would lower the
current disclosure threshold and broaden the existing requirements
to provide adequate and timely information to assist users in
assessing the likelihood, potential magnitude, and potential timing
of future cash outflows associated with loss contingencies.
The FASB said the draft was issued due to
concerns from investors and other financial reporting users about
disclosures of loss contingencies under the existing guidance.
The proposed amendment would be effective for
fiscal years ending after 15 December 2010 for public companies and
from the first annual period beginning after 15 December 2010 for
non-public companies.
The exposure draft is open for comments until
20 August 2010.
