BC254 The proposals in the 2005 ED proposed to align the accounting for termination benefits with the requirements in FASB Accounting Standards Codification (ASC) Topic 420 Exit or Disposal Cost Obligations (FASB ASC Topic 420), relating to 'one‑time termination benefits' and FASB ASC Topic 712 Compensation - Nonretirement Postemployment Benefits, relating to 'special termination benefits'. The Board acknowledged that differences with US GAAP would remain following the introduction of these amendments. Nonetheless, the Board believed that the proposed amendments would converge with some US GAAP requirements and would improve the accounting for termination benefits. The proposals for termination benefits complemented proposed amendments to the requirements on restructurings in IAS 37 in the 2005 ED. The Board received 123 comment letters in response to the proposals in the 2005 ED.

BC255 The Board considered the following:

(a) benefits payable in exchange for future service (see paragraphs BC256 and BC257);

(b) recognition of termination benefits (see paragraphs BC258-BC260);

(c) measurement of termination benefits (see paragraph BC261); and

(d) interaction with restructuring costs, plan amendments, curtailments and settlements (see paragraphs BC262-BC268).