RBI clarifies on treatment of unrealised gain/loss on a derivative transaction undertaken for hedging

RBI has issued circular w.r.t. Implementation of Indian Accounting Standards wherein it has clarified that unrealised gain/loss on a derivative transaction undertaken for hedging may be offset against the unrealised loss/gain recognized in the capital (either through Profit or Loss or through Other Comprehensive Income) on the corresponding underlying hedged instrument. It is also clarified that unrealized gains/losses shall be considered net of the effect of taxationRBI has issued circular w.r.t. Implementation of Indian Accounting Standards wherein it has clarified that unrealised gain/loss on a derivative transaction undertaken for hedging may be offset against the unrealised loss/gain recognized in the capital (either through Profit or Loss or through Other Comprehensive Income) on the corresponding underlying hedged instrument. It is also clarified that unrealized gains/losses shall be considered net of the effect of taxationtaxmann.com Latest Statutory HappeningsRead More

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