n NISM Certifications
NSM General NISM
Medium

As per current accounting standards in India, the fair value will be taken to the Profit/Loss Account including transactions qualifying as Hedging Transactions – State True or False?

Practice question from NISM Series IV - Mock Test 3 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    True

  2. False

    Correct answer

Why this is the answer

Fair value changes are recognized in Profit/Loss except for transactions that qualify as hedging, which are accounted for differently.

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