Common Derivatives Study Guide | NISM Study Notes

Disclosure of Foreign Assets: Entities must disclose all foreign exchange assets, liabilities, and contingent liabilities, both hedged and unhedged.
Hedge Documentation: Entities must document risk management objectives, hedged risks, and hedge effectiveness at inception and each reporting period.
Effectiveness Measurement: Ineffective portions of hedges must be recognised in profit and loss immediately.
Derivative Classification: Trading derivatives are classified as current; hedges follow the classification of the hedged item or settlement dates.
No Partial Settlements: Derivatives with periodic/multiple settlements should not be split into current/non-current parts.

NISM Series XIII Common Derivatives Certification Exam Notes