FASB delays highly controversial proposal on contingency disclosures: creating alternative model for comparison.(Issue UPDATE)

FASB Statement No. 5, Accounting for Contingencies and FASB Statement No. 141(R), Business Combinations, will be effective no sooner than fiscal years ending after Dec. 15, 2009--a delay of at least one year.

The proposed standard is intended to amend the loss contingency disclosures currently required by FASB Statements 5 and 141(R). The proposed amendments to these statements would increase the amount of information that publicly traded companies are required to disclose about pending or threatened litigation.

After receiving comments on the exposure draft from more than 200 businesses and individuals, FASB is preparing an alternative model to address concerns. …