News shortcuts: From the Courts | Top Headlines | VAT (Value Added Tax) | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | Professional Updates | Corporate Law | Markets | Students | General | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing | GST - Goods and Services Tax | PPE Safety Kit SITRA Approved | PPE Safety Kit
Latest Circulars »
 Loans against Gold Ornaments and Jewellery for Non-Agricultural End-uses
 Basel III Capital Regulations Treatment of debt mutual funds/ETFs
 Micro, Small and Medium Enterprises (MSME) sector Restructuring of Advances
 Resolution Framework for COVID-19-related Stress
 Directions under Section 35 A of the Banking Regulation Act, 1949 (AACS) Shivam Sahakari Bank Ltd, Ichalkaranji, Kolhapur, Maharashtra
 Notification No. 56/2020 CENTRAL BOARD OF DIRECT TAXES
 12 LPA-Opening Chartered Accountant, Finance
  Implementation of Indian Accounting Standards
 Notification No. 50/2020 CENTRAL BOARD OF DIRECT TAXES
  Clarification in relation to notification issued under clause (v) of proviso to section 194N of the Income-tax Act, 1961 (the Act) prior to its amendment by Finance Act, 2020
  Publication of RBI-Occasional Papers-Vol. 41, No.1, 2020
 RBI-Fair Practices Code for Asset Reconstruction Companies
  Gujarat State Road Development Corporation Ltd, Gandhinagar, Gujarat
 Fair Practices Code for Asset Reconstruction Companies
 Publication of RBI-Occasional Papers-Vol. 41, No.1, 2020

Implementation of Indian Accounting Standards
July, 27th 2020

RBI/2020-21/15
DOR (NBFC).CC.PD.No.116/22.10.106/2020-21

July 24, 2020

To

Non-Banking Financial Companies
and Asset Reconstruction Companies
implementing Indian Accounting Standards

Madam / Sir,

Implementation of Indian Accounting Standards

Please refer to paragraph 3 of the Annex to our circular DOR (NBFC).CC.PD.No.109/22.10.106/2019-20 dated March 13, 2020, on the captioned subject, in terms of which any net unrealised gains arising on fair valuation of financial instruments, should not be included in owned funds whereas all such net losses should be considered.

2. On a review, it has been decided that the 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. If after such offset and netting with unrealised gains/losses on other financial instruments, there are still net unrealised gains, the same should be excluded from regulatory capital as required by paragraph 3 of the annex to the said circular.

3. It is also clarified that unrealized gains/losses shall be considered net of the effect of taxation. All other instructions remain unchanged.

Yours faithfully,

(Manoranjan Mishra)
Chief General Manager

Home | About Us | Terms and Conditions | Contact Us | PPE Kit SITRA Approved | PPE Safety Kit
Copyright 2020 CAinINDIA All Right Reserved.
Designed and Developed by Ritz Consulting