The Financial Accounting Standards Board is reviving discussion of a proposal to require more disclosure of potential lawsuit losses after getting opposition from Citigroup Inc., JPMorgan Chase & Co. and Bank of America Corp.

The banking companies objected when FASB sought last year to expand reports on possible outcomes of pending or anticipated litigation. Its staff is recommending that the board, which met Wednesday, "redeliberate all of the significant issues," according to a document on FASB's Web site.

FASB pushed the change because investors said disclosures under the existing rule failed to give enough information to assess "the likelihood, timing and amount of future cash flows associated with loss contingencies," according to the June 2008 proposal. The board in September delayed the plan pending more study.

The proposal would require companies to disclose the amount or an estimate of a claim; the maximum potential loss and likely insurance coverage along with details of the dispute's origin, status, expected timing of a resolution and most likely outcome. A table would display potential litigation losses.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.