EFRAG noted that there were some difficulties in the ED proposals, especially for lessors, including:

• the lease boundary
• inconsistencies with the revenue recognition proposals
• the derecognition/ sale model.

EFRAG recommended that the IASB undertake field testing. The IASB noted that they were undertaking a comprehensive programme of outreach during the exposure period and were also preparing a questionnaire on the proposals that would be released.

There will be a public roundtable in London during the week of 13 December (the Board meeting week). Constituents wishing to participate will be asked to submit their comment letter sometime in advance (date not given, but assume around 30 November). Other roundtables will be held in North America (Norwalk and San Francisco) and Asia/ Pacific (possibly Tokyo) later.

It was noted that EFRAG had responded positively to the IASB's request that IFRS constituents respond to the FASB's exposure draft on financial instruments. The EFRAG response had 'very clearly rejected' the FASB's model and expressed support for the fundamental approach in IFRS 9.

Various aspects of the IASB's project were discussed. The key messages were:

• EFRAG encouraged the IASB to revisit the amortised cost/ fair value dividing line as it redeliberates the expected loss model
• EFRAG prefers a frozen credit spread
• The IASB suggested that the final package on impairment may be expressed differently but would achieve equivalent outcomes
• It was suggested the IASB and the FASB could explain better what the expected loss model is intended to capture, i.e., the best information available today, not expectations about conditions in the future
• The Hedging chapter ED is expected in the fourth quarter of 2010. The model being explored is a more fundamental re-think than the FASB's proposals. It would concentrate on the economics and rationale underlying hedging activities. Some current requirements would remain (designation and documentation), but 'bright lines' would be removed.

Some key discussion points include:

• IASB deliberations have concluded (barring any sweep issues identified in drafting)
• A Staff Draft of the final IFRS will be available on or around 23 September on the IASB's Website
• FASB will hold a roundtable in Norwalk on 25 October, concentrating on variable interest entities. The intention will be to determine whether to use the IFRS as the basis for amendments to US GAAP.
• The IASB's Investment Companies ED is expected in late September 2010 and will have a 120-day comment period.
• A Staff Draft of the Joint Arrangements IFRS will also be available publicly in late September. The IASB will issue Consolidation and Joint Arrangements together.