Global Standards for the world economy

Tuesday 07 April 2020

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Work plan for IFRSs

Credit Risk in Liability Measurement

Credit Risk in Liability Measurement (stopped as a separate project)


In October 2009, the IASB stopped credit risk in liability measurement as an independent project. See below for more information.

The IASB started to examine the area of credit risk in liability measurement as part of its comprehensive review of accounting issues emerging from the global financial crisis.

The issue is relevant to a number of the IASB's projects - in particular in the accounting for financial instruments, insurance, fair value measurement and provisions, contingent liabilities and contingent assets.


Where are we in the project?

The project team has completed analysing the responses received on the IASB's invitation to comment. The staff paper referred to in the invitation to comment outlines the three most often-cited arguments in favour of including credit risk in current measurement of liabilities and the three most often-cited arguments against. The comment period for the paper closed 1 September 2009. View the comment letters received here.

What will happen next?

The IASB started discussing the responses to the discussion paper in its September 2009 board meeting and completed its discussions in October 2009. At its October meeting the Board decided to stop work on credit risk as a free-standing work stream and agreed not to reach a general conclusion on credit risk at this time. It will incorporate the topic in the conceptual framework measurement project.

Additionally the Board decided not to change the role of credit/performance risk in the definition of fair value result of the responses to this DP.

Finally the Board decided to consider the application of the fair value definition in every project involving measurements that would otherwise be at fair value and consider the question of credit risk in every project involving a current measurement of liabilities that is not fair value.
The Board is discussing credit risk in liability measurement in the project to replace IAS 39 and further information can be found here.

Project contacts

Wayne Upton 
Director of International Activities


Sue Lloyd  
IASB member