Hi. I would be grateful if someone can help me undertsand the way to account for an FX swap, exchanging FX for local currency. Since this is considered a derivative, how is it accounted for in the books? should it be both a liability and an asset? derivative are measured at FVTPL, how do i account for the changes in FV and at the same time account for the gain/losses on the swap arrangements?
Thank you in advance.
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Accounting for FX swaps
6y ago#1Swap measured at FV
Gain/loss to P&L
(unless cash flow hedge)
May give rise to either financial asset or financial liability
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