comment-letter-Fair-Value-Option-for-Financial-Liabilities

KPMG IFRG Limited Tel +44 (0)20 7694 8871 1-2 Dorset Rise Fax +44 (0)20 7694 8429 London EC4Y 8EN mary.tokar@kpmgifrg.com United Kingdom mmmm Sir David Tweedie International Accounting Standards Board st1 Floor 30 Cannon Street Our ref MT/288 London Contact Mary Tokar EC4M 6XH 16 July 2010 Dear Sir David Comment letter on Exposure Draft ED/2010/4 Fair Value Option for Financial Liabilities We appreciate the opportunity to comment on the International Accounting Standards Board’s (IASB or the Board) Exposure Draft (ED/2010/4) Fair Value Option for Financial Liabilities. This letter expresses the views of the international network of KPMG member firms. Please note that our comments in this letter are restricted to the proposals contained in the ED for financial liabilities designated as fair value through profit or loss under the fair value option. As requested by the Board, we offer no comment in this letter on the decision of the IASB generally to retain the guidance on accounting for financial liabilities in IAS 39 Financial Instruments: Recognition and Measurement. In our comment letter on the Discussion Paper Credit Risk in Liability Measurement, we recommended that the Board seek and evaluate input from users of financial statements as to the decision-usefulness of including or excluding gains and losses that arise from changes in an entity’s own credit risk from profit or loss. We ...