The staff provided the Board an update on the comment letters and outreach on the liabilities project. The staff noted that constituents expressed serious concerns over part of the proposed measurement guidance - in particular measuring the obligations fulfilled by undertaking a service by estimating the amount that the entity would rationally pay a contractor at the future date to undertake the service on its behalf. That proposal gained no support among constituents. Most constituents also expressed concerns over application of risk adjustment to IAS 37-type of liabilities.

The staff also noted that many constituents commented on the other aspects of the proposed Liabilities IFRS, especially with regards to the probability threshold for recognition of liabilities and use of expected values in estimating liabilities. Some constituents suggested that a convergence project should be undertaken with the FASB to align the IFRSs and US GAAP. The staff plans to provide the Board with a full comment letter analysis at the September meeting. At that meeting the staff would ask the Board to provide further guidance on the project.