21 October 2009
The Board considered a summary of the responses to the discussion paper (DP) Credit Risk in Liability Measurement. The Board decided:
- to stop work on credit risk as a free-standing work stream.
- not to reach a general conclusion on credit risk at this time but instead to incorporate the topic in the conceptual framework measurement project;
- not to change the role of credit/performance risk in the definition of fair value as a result of the responses to the DP. The Board has not yet reviewed responses to the exposure draft Fair Value Measurement;
- not to change the role of credit/performance risk in the definition of fair value as a result of the responses to the DP. The Board has not yet reviewed responses to the exposure draft Fair Value Measurement.
- to consider the application of the fair value definition in every project involving measurements that would otherwise be at fair value; and
- to consider the question of credit risk in every project involving a current measurement of liabilities that is not fair value.