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03 May 2010

CESR’s comments on IASB’s exposure draft measurement of liabilities in IAS 37


CESR’s main concerns relate to the due process applied on the IASB’s project to amend IAS 37 provisions, contingent liabilities and contingent assets. CESR shares EFRAGs view that the IASB should re-expose the entire proposed standard and not just the proposed measurement requirements.

EFRAG published on 22 February 2010 its draft comment letter on the IASB’s Exposure Draft (ED) Measurement of Liabilities in IAS 37. Following the publication by the IASB in February 2010 of a Working Draft of the entire new standard replacing IAS 37 on its website, EFRAG issued an amended comment letter on 13 April 2010.
CESR’s main concerns, as expressed in the original comment letter on EFRAG’s initial draft response (CESR 10-390), relate to the due process applied on the IASB’s project to amend IAS 37 Provisions, Contingent Liabilities and Contingent Assets. CESR share the views of EFRAG and of the two dissenting Board members that the IASB should re-expose the entire proposed standard and not just the proposed measurement requirements because measurement objectives and methods and recognition criteria are closely related.
A Working Draft of the entire revised standard was published by the IASB in February 2010 but does not seek comments from constituents. An IASB staff paper was also published not long before the original deadline for comments ‘to help people obtain a high-level understanding’ of the new recognition criteria on liabilities arising from law suits. CESR believes however that the two documents are key both to understanding the proposals themselves and what the IASB is seeking to achieve.
 


© CESR - Committee of European Securities Regulators


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