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Derivatives Accounting Proposal
1. Recognition and Measurement of Derivative Financial Instruments
All derivatives shall be recognized in the statement of financial position as assets or liabilities and measured at fair value. ... Basics of Accounting for Gains and Losses
Gains and losses on derivatives shall be accounted for in different ways depending on the designated reason for holding the instrument:
a. ... For all other derivatives, including derivatives designated as trading, derivatives not designated as hedges, and derivatives designated as hedges of other derivatives, gains and losses shall be recognized in earnings. ... Accounting for Hedges of Forecasted Transactions
Derivatives may be designated as hedges of forecasted transactions only if the following conditions are met:
a. ... If the hedging instrument ceases to qualify for designation for example because the cash flows are no longer expected to offset changes in the cash flows of the forecasted transaction), hedge accounting shall be discontinued prospectively, i.
Approximate Word count = 687
Approximate Pages = 2.7
(250 words per page double spaced)
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