Questionnaire on FVO for liabilities
25 May 2010
The IASB has published a questionnaire to seek the views of users of financial statements about the Board's Recent Exposure Draft on the fair value option for financial liabilities.
The ED proposes that all gains and losses resulting from changes in 'own credit' for those financial liabilities that an entity chooses to measure at fair value should be recognised as a component of 'other comprehensive income', not in profit or loss. Such gains or losses would be presented using a 'two-step approach':
- As a first step, an entity would present the full change in fair value in profit or loss.
- In the second step, the portion relating to changes in an entity's own credit risk would be presented as an offsetting entry in profit or loss and presented in OCI.
Click for:
- More Information about the Questionnaire on the IASB's website.
- Our earlier story on exposure draft on the fair value option for financial liabilities.