The International Accounting Standards Board (IASB) issued an exposure draft change accounting for the value of certain liabilities resulting from changes in a firm’s credit standing under the International Financial Reporting Standards (IFRS).

Under rules in place since 2007, firms are able to elect a ‘fair value option’ for their own debt instruments. When the option is elected, debt is carried at fair value on the statement of financial position, with changes in fair value being recorded to the income statement.

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