Gains and losses on a financial instrument

Gains and losses on a financial instrument

How are gains and losses on a financial instrument be measured?

A gain or loss on a financial asset or financial liability that is measured at fair value should be recognised in profit or loss account. For an investment in equity instrument, which the entity has elected to present gain or loss on that investment in other comprehensive income, then gains or loss on such investments should be recognised in other comprehensive income. Dividends are recognised in profit or loss account when the entity’s right to receive payment of dividend is established and it is probably that the economic benefits will flow to the entity and the amount of dividend can be measured reliably. The gain or loss on financial assets measured at amortised cost not forming part of hedging relationship should be recognised in profit or loss when the financial asset is derecognised. It should also be declassified from amortised cost to fair value through profit or loss through the amortisation process. When a financial asset is declassified out of the amortised cost measurement category, then another gain or loss arising from the difference between the amortised cost of the financial asset and the fair value is recognised in profit or loss.

Ind AS Accounting Standards

Effective Rate of Interest – EIR

What is SPPI test?

Are RBI circulars relevant for ECL computation as per Ind AS 109?

What is a Financial instrument?

Is there a choice to designate as FVTPL?

What are treasury shares and how are these presented

Contract to deal in non-financial item

Can a corporate entity still follow settlement date accounting?

What does Interest represent?

Gains and losses on assets measured at FVOCI

Separately accounting for an embedded derivative

Derecognition of a financial asset

Foreign currency risk in a firm commitment as a fair value hedge

Treatment of transaction costs

Derecognise financial assets/financial liabilities retrospectively

Modification of contractual cash flows

Own use exemption as per the Accounting Standard

Difference between amortised cost & held-to-maturity

Accounting treatment for FVOCI Instruments

What is the concept of effective interest method?

What is a hybrid contract?

First-time adoption while classifying a financial instrument

SPPI test & business model objective test

Current standards for financial instruments as per AS?

Effective interest Rate

Contract is settled through the entity’s own equity instrument

Financial asset categorised as FVOCI

What is an embedded derivative?

Impairment model for different categories of financial assets

Ind ASs relating to financial instruments

FVOCI (equity instruments) and FVOCI (debt instruments)

Classification of derivative instruments

Contract meant for own use

Reclassification of a financial asset

Debt instrument measured at FVOCI

Change in contractual cash flows

Loss allowance as per Ind AS 109

Ind AS for financial instruments replica of IFRS?

Contractual cash flows & effective interest rate

Long-term financial liability classified as FVTPL

Credit adjusted effective interest rate

Effective rate of interest during the first-time adoption

Consequence of not de-recognising an asset after the sale

Designation of contracts deal a non-financial item on first time adoption

Recognition of financial instruments on first-time adoption

Gains and losses from liabilities designated as FVTPL

Measurement categories for financial assets

Difference between time value of money and modified time value of money