How do you account for derivatives under IFRS?
How do you account for derivatives under IFRS? All derivatives in scope of IFRS 9, including those linked to unquoted equity investments, are measured at fair value. Value changes are recognised in profit or loss unless the entity has elected to apply hedge accounting by designating the derivative as a hedging instrument in an eligible hedging relationship. How do you account for derivatives? The accounting rules require:Recording of all derivatives at their fair value, and their periodic remeasurement to fair value.Identifying the purpose of the derivative, and proving the purpose and effectiveness of any hedging.The immediate reporting of non-hedging gains...