Accounting for liabilities designated at fair value through profit and loss
The Barclays Bank Group has the ability to make the fair value designation when holding the instruments at fair value
reduces an accounting mismatch (caused by an offsetting liability or asset being held at fair value), or is managed by the
Barclays Bank Group on the basis of its fair value, or includes terms that have substantive derivative characteristics (Note
13). In accordance with IFRS 9, financial liabilities may be designated at fair value, with gains and losses taken to the
income statement within net trading income (Note 5) and net investment income (Note 6). Movements in own credit are
reported through other comprehensive income, unless the effects of changes in the liability's credit risk would create or
enlarge an accounting mismatch in profit and loss. In these scenarios, all gains and losses on that liability (including the
effects of changes in the credit risk of the liability) are presented in profit and loss. On derecognition of the financial liability
no amounts relating to own credit risk are recycled to the income statement. The details on how the fair value amounts are
arrived at for financial liabilities designated at fair value are described in Note 16.