Illustration 4

Financial Reporting

Sir can you explain why derecognition in the first event and no derecognition in the second event [Video Time Stamp: 14:05] Video Details ------------- Financial Instruments - FR Recognition and Derecognition of Financial Instruments #9. Illustrations 1 - 4

Jaswanth P

CA Final

★ 0

16-Nov-25 22:59

Answers (1)

Since principal and swap amount are not linked (same), the risk is not transferred and hence not derecognised.

CA Suraj Lakhotia

Admin

17-Nov-25 12:22