IASB / FASB July 2009

The boards discussed an approach to displaying in the statement of comprehensive income the changes in the fair value of a liability instrument. That approach—the cost of capital approach—would separate the total changes in the fair value of liabilities into: 

• a line item in profit or loss that is similar to accrued interest but can be computed for many types of liability instruments, including derivative instruments with the issuer’s own equity instruments as their underlyings, and 
• the remainder of the change in fair value, which would be reported separately as a residual.
  The Boards decided tentatively not to pursue the cost of capital approach.