Companies that take advantage of derivatives for hedging their currency, commodity and interest rate risks should also consider the impact of periodical MTM valuations on their financial statements.
Complying with hedge accounting under Ind AS 109 is obligatory for companies with net worth of Rs. 500 cr and above wef FY 2016-17. Smaller companies are also encouraged to adopt AS 30 /Ind As 109 optionally, in order to ensure that their P&L is not adversely impacted by valuation losses.
Hedge Accounting services would provide for accounting guidance and advice on fair value measurement of derivatives with underlying exposures. The services would also include assistance in meeting full disclosure requirement under Companies Act / as required by RBI and ICAI from time to time