An improvement to a company's credit rating under IFRS will lead to a reduction in the carrying amount of any financial liabilities and a gain being reported in OCI.

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Under IFRS, changes in a company's credit risk related to financial liabilities designated at fair value through profit or loss are recognized in other comprehensive income (OCI), but this does not lead to a reduction in the carrying amount of the financial liabilities. The gain or loss from changes in credit risk recognized in OCI does not affect the carrying amount of the liability; it only impacts the equity through OCI.

An Improvement to a Company's Credit Rating Under IFRS Will