The Financial Accounting Standards Board, faced with strong criticism of its plans to change how companies report cash reserves set aside for loss contingencies, has decided to come up with a contingency plan of its own.
The board has postponed implementation of its proposed changes for contingency losses at least until after next spring’s annual reporting season, the latest in a series of delays over the last three years. Some are hoping this extension might last long enough to head off changes completely, by demonstrating that the existing rules are working just fine.
Contingencies are potential future financial gains or obligations—lawsuits, ...