This was a late entry. The submission specifically asked the IFRIC to address the issue at the November IFRIC meeting as it related to the current market conditions. The IFRIC coordinator informed the IFRIC that the submitter published the submission on its website and hence, normal rules of confidentiality were not relevant. It was noted that the approach presented in the submission was, according to the submission, broadly agreed with by non-accounting standard setting authorities in the jurisdiction the issue had arisen.

The submission was seeking for IFRIC's input on determining the components of a discount rate to be used to determine fair value using a discounted cash flow approach for instruments where markets are considered inactive. In particular, two specific components were identified and a possible approach to that proposed: credit and liquidity spreads that are not observable in a market.

The staff noted that it was clear that any guidance would be more like implementation guidance and that IFRIC generally does not add items to the agenda where the output would be implementation guidance. In addition, it was highlighted that the Board has several activities on its agenda in relation to determining fair value.

One IFRIC member noted that the proposed agenda decision wording was not strong enough in the light of the possibility of being interpreted as implicit consent to the proposed approach. This member proposed to be explicit that the agenda decision should be clear that this approach is not acceptable. It was also noted that the IASB's Expert Advisory Panel has published guidance on this, which was generally considered useful albeit not authoritative and that the agenda decision should refer to the output of the panel published recently.

The IFRIC agreed not to add the item to the agenda, but to change the wording of the tentative agenda decision to:

• Make explicit reference to the final report of the IASB's Expert Advisory Panel
• Make clear that the approach presented was not consistent with the measurement objective and the guidance in IAS 39 Financial Instruments: Recognition and Measurement.