Responses to IASB Documents for Comment

IAS 37 Provisions, Contingent Liabilities and Contingent Assets

Working Draft –Liabilities - Improving IAS 37 – January 2010

On May 19, 2010, the AcSB submitted a comment letter responding to the IASB’s Working Draft of a new “Liabilities” standard, including the proposals in its “Measurement of Liabilities in IAS 37” Exposure Draft. The letter supports the IASB’s project to improve IAS 37, but recommends that practical changes be made before the proposals are finalized. The letter recommends adding a “more likely than not” threshold to assist an entity to determine if a present obligation exists. It also recommends requiring obligations that will be fulfilled by performing a service to be measured at the expected present value of the resources the entity expects to expend. If the project cannot be completed expeditiously, the letter recommends that the IASB defer the project and focus on developing and issuing high-quality standards in its joint projects with the FASB. The AcSB’s letter posted by the IASB is available here.