The IASB and FASB discussed the impairment project, taking into consideration the feedback received on the supplementary document (SD). The boards considered four alternatives:
1. finalise the approach developed by the IASB on the basis of deliberations before the convergence discussions (ie a time-proportional approach for a 'good book' and full lifetime expected losses for a 'bad book');
2. finalise the approach developed by the FASB based on deliberations before the convergence discussions (ie recognise losses expected to occur in the 'foreseeable future' period);
3. finalise the model in the SD taking into consideration feedback received; or
4. develop a variation of the previous proposals, taking into account the feedback from the boards' original EDs and the SD.
The boards tentatively decided to pursue the fourth alternative. A small working group of board members and senior staff from both the IASB and FASB has been created to develop some specific suggestions, such as baseline models or objectives. This group will develop suggestions to be presented to the boards within a reasonably short time.