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For the B737NG I cannot comment on the Polar Nav option as we do not operate the aircraft within these regions. Hence the published limitation pertaining to latitude.
On the B744 there is a heading reference switch within the proximity of the Nav DUs for 'Norm' and 'True' selection. I believe the FMS updates position depending on its selection. When in magnetic, position is based on place, bearing, distance from two radio aids, IRS position and GPS. Above 82N and below 82S split IRS updating occurs with GPS comparison. Radio aid updating is inhibited. I believe this function is automatic at these latitudes.
In response to the Boeing article, for polar ops, GPS and two independent IRUs are needed for position updating and comparison. Single DEU operation is non dispatchable for any operation and when airborne precludes a host of functions. I believe Boeing aircraft have now reached version 10.8 or 10.9 for the FMS update. I suppose the version which you install is dependent on your operation.
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