Liabilities: Replacement of IAS 37
Exposure draft comment period
The Board considered requests from constituents to extend the comment period for the exposure draft Measurement of Liabilities in IAS 37. Many Board members were supportive of such extension as they believed that would provide the Board the necessary time for outreach and explanation of misunderstanding of the recognition criteria.
Other Board members disagreed. In their view, constituents just disagree with recognition guidance and no extension would help it. One Board member noted that some practitioners misapply the current IAS 37 criteria and that misapplication would not change by extension of comment period.
On balance, majority of the Board agreed to extent the comment period until 19 May 2010 (three months after working draft was published) to give respondents more time to understand the recognition requirements of the IFRS before they finalise their comments on the revised measurement proposals.