Accounting for Financial Derivatives: An Overview

In the era of modern finance, various new financial instruments have assumed significance in Indian economy. Financial derivatives are most important as well as significant among them. After their introduction in India in June 2000, financial derivatives have gained a significant ground in the Indian stock market. But till date no specific accounting standard has been formulated for accounting as well as disclosure of the results of derivative trading in India. The present article seeks to provide a brief outlook of the general accounting aspects of derivative trading in India.