Transactions within the scope of this guidance note
What type of transactions are within the scope of this guidance note and which are outside the scope?
All transactions covered by AS 11, accounting for embedded derivative contracts and accounting for non-derivative financial assets/liabilities designated as hedging instruments are outside the scope of the guidance note.
The following derivative contracts are covered by this guidance note irrespective of whether it is used as hedging instruments or not:
- Foreign exchange forward contracts hedging highly probable forecast transactions and firm commitments;
- Other foreign currency derivative contracts that are outside the scope of AS 11;
- Equity index futures, traded equity index options, traded stock futures and option contracts;
- Commodity derivative contracts.
