Accounting for FX swaps

This topic has 1 reply, 2 voices, and was last updated 5 years ago by Stephen Widberg.

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May 7, 2020 at 10:32 am #570222
Diane Alvis
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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.
May 7, 2020 at 2:22 pm #570253
Stephen Widberg
Keymaster
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Swap measured at FV
Gain/loss to P&L
(unless cash flow hedge)
May give rise to either financial asset or financial liability
That’s all you need for SBR!
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