DTT comment letter on DP Credit Risk in Liability Measurement

Deloitte Touche Tohmatsu 2 New Street Square London EC4A 3BZ United Kingdom Tel: +44 (0) 20 7936 3000 Fax: +44 (0) 20 7583 1198 www.deloitte.com Direct: +44 20 7007 0907 Direct Fax: +44 20 7007 0158 kwild@deloitte.co.uk Sir David Tweedie Chairman International Accounting Standards Board 30 Cannon Street London United Kingdom EC4M 6XH Email: commentletters@iasb.org 1 September 2009 Dear Sir David, Re: Discussion Paper, Credit Risk in Liability Measurement Deloitte Touche Tohmatsu is pleased to respond to the Discussion Paper, Credit Risk in Liability Measurement (the “Discussion Paper”). We support the Board’s effort to address this critical topic and believe that future standard setting would benefit if the IASB were to define a consistent set of principles for when credit risk should be reflected in liability measurements. To assist in the development of such a set of principles, the Board should first define the various potential measurement attributes that could be applied to liabilities as part of Phase C of its Conceptual Measurement project. Below we outline the measurement attributes that we believe the Board should consider. Subsequently, we discuss our proposed set of principles governing when the measurement of a liability should incorporate credit risk. Measurement Attributes At this time, we support further consideration of four different measurement attributes for liabilities. 1 ...