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.