The Research Committee of ICAI issued the Guidance Note on Accounting for
Derivative Contracts to establish uniform accounting principles for accounting
of derivative contracts. In view of global developments in respect of Interbank
Offered Rates (IBORs), the same has been revised. A report on “Reforming
Major Interest Rate Benchmarks” was issued by Financial Stability Board
(FSB). Consequently, some major interest rate benchmarks will cease to be
published across the globe after December 2021. The ongoing reform in IBORs,
will impact the way financial information is accounted for in the financial
statements. Therefore, Guidance Note has been revised primarily to address
replacement issues relating to hedge accounting arising from Interest Rate
Benchmark Reform.

I congratulate the Accounting Standards Board in taking this initiative and
coming out with revised Guidance Note

I appreciate CA. M P Vijay Kumar, Chairman, Accounting Standards Board and
CA. (Dr.) Sanjeev Singhal, Vice-Chairman, Accounting Standards Board and
all members of the Accounting Standards Board including other colleagues in
the Council who have contributed immensely towards bringing out this
publication.

I am confident that this Guidance Note would be of immense use to the
professionals and other stakeholders for fulfilling their financial reporting
requiirements.