Derivative Financial Instruments: measured at fair value through profit or loss with gains and losses recognised on remeasurement. Derivatives are contracts whose value varies with an underlying asset, require little or no initial investment and are settled in the future; settlement may be cash or physical. Accounting treats favourable positions as Derivative Financial Assets and unfavourable ones as Derivative Financial Liabilities, measured at fair value through profit or loss. Initial recognition often yields zero net fair value and no entry unless premiums are paid. At each balance sheet date fair value changes are recognised in profit or loss, and on settlement the underlying asset, cash and derivative balances are adjusted with any fair value difference recorded in profit or loss.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Derivative Financial Instruments: measured at fair value through profit or loss with gains and losses recognised on remeasurement.
Derivatives are contracts whose value varies with an underlying asset, require little or no initial investment and are settled in the future; settlement may be cash or physical. Accounting treats favourable positions as Derivative Financial Assets and unfavourable ones as Derivative Financial Liabilities, measured at fair value through profit or loss. Initial recognition often yields zero net fair value and no entry unless premiums are paid. At each balance sheet date fair value changes are recognised in profit or loss, and on settlement the underlying asset, cash and derivative balances are adjusted with any fair value difference recorded in profit or loss.
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