Summary of Statement No. 11

Accounting for Contingencies: Transition Method—an amendment of FASB Statement No. 5 (Issued 12/75)

Summary

This Statement amended paragraph 20 of FASB Statement No. 5, Accounting for Contingencies, to require that a company restate its financial statements for as many preceding periods as was practicable to conform to the provisions of Statement 5. The effect on income of applying Statement 5 in a period in which acumulative effect was included in determining net income was required is to be disclosed for that period, and the reason for not restating all prior periods presented had to be explained.