Accounting and tax accounting of derivative financial instruments

Sultanova B.B.

  • Б. Б. Султанова Al-Farabi Kazakh National University

Abstract

Financial markets debt and equity markets, suggest an immediate supplyof a financial asset, so they are called cash markets or spot markets.Other markets operate contracts to buy or sell an asset at some point in thefuture. The owners of this contract shall have the right or obligation to buyor sell a financial asset at a specified price on a specified day. The price ofthis contract is a derivative of the price of the asset. Therefore such contractsare called derivatives. Derivative financial instruments are one of themost complex accounting objects. The paper deals with the recognitionand measurement of derivative financial instruments in accordance withIFRS (IFRS) 9 “Financial Instruments” and IFRS (IAS) 39 “Financial Instruments:Recognition and Measurement”.This article discusses the general principles of tax accounting of derivativefinancial instruments adopted in Kazakhstan’s tax practice, as wellas the basic provisions of § 5. Derivative financial instruments of the TaxCode of the Republic of Kazakhstan.Key words: Financial Instruments, derivative financial instruments,derivative financial assets, derivative financial liabilities, Recognition andMeasurement, forwards, options, futures, swaps.
Published
2018-11-05
How to Cite
СУЛТАНОВА, Б. Б.. Accounting and tax accounting of derivative financial instruments. The Journal of Economic Research & Business Administration, [S.l.], v. 119, n. 1, p. 136-141, nov. 2018. ISSN 1563-0358. Available at: <http://be.kaznu.kz/index.php/math/article/view/2278>. Date accessed: 21 nov. 2018.