n NISM Certifications
NSM General NISM
Medium

Identify the TRUE statement about accounting for derivatives under current standards:

Practice question from NISM Series I - Mock Test 5 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Derivatives contracts that are unsettled remain off-balance-sheet items

  2. B

    All derivatives contracts must be accounted at book value

  3. C

    All derivatives contracts must be accounted at zero value

  4. All derivatives contracts should be recognized in the balance sheet

    Correct answer

A full explanation for this question is being written. In the meantime, the correct answer is highlighted above.

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