Law360, New York (October 14, 2010, 5:02 PM ET) -- Investors have expressed concern in recent years about the adequacy of companies’ financial statement disclosures of nonfinancial loss contingencies, including claims arising from litigation. In response to this criticism, the Financial Accounting Standards Board (FASB) undertook a project to improve disclosure requirements and guidance in this area.

The FASB’s initial exposure draft was issued in June 2008 and, after extensive comments and roundtable discussions, the revised draft was issued in July 2010.[1] The stated objective was to require sufficient qualitative and quantitative information about loss contingencies...