The Board had decided at its July meeting that it would not issue a discussion paper on SBP but, rather, an exposure draft. That was because IASC had already published the G4+1 Paper on SBPs. The Board debated whether a decision to bypass normal due process was a good idea and decided the following:

• IASB will re-issue the G4+1 SBP discussion paper.
• The paper will explain why this is on the IASB agenda, the adoption of the G4+1 paper by the IASB, the fact that previous comment letters need not be re-submitted, and that the IASB is seeking comments specifically on measurement issued around SBPs.
• Comment deadline: 15 December 2001.
• The Board will continue to discuss the issues surrounding SBPs in the interim.

IASB staff presented a paper on SBPs to the Board:

• After discussing arguments for and against recognition of SBPs as an expense, the paper recommends that the payments are expenses that should be deducted in measuring net profit or loss.
• The Board tentatively agreed with this proposal, subject to comments received on the discussion paper.
• Four measurement bases were discussed:
  • Historical cost
  • Intrinsic value
  • Minimum value
  • Fair value
• Fair value appeared to receive the most support.
• The paper will be redrafted addressing concerns and comments by IASB members, including treatment for unlisted companies and the use of option pricing models.
• This will be tabled at a future IASB meeting.