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IFRS 9 Fair Value Option for Financial Liabilities Exposure Draft


This project was part of the first phase of the development of IFRS 9 Financial Instruments: Classification and measurement. In their responses to the exposure draft Financial Instruments: Classification and measurement issued of July 2009, many expressed concerns about recognising in profit or loss the effects of changes in the credit risk of financial liabilities. In May 2010 IASB published for public comment an exposure draft with proposed changes to the fair value option (FVO) for financial liabilities. The proposals aimed to ensure that changes in the credit risk of liabilities that an entity chooses to measure at fair value will not cause volatility in profit or loss. The IASB published the financial liabilities section of IFRS 9 in October 2010.
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