Accounting and tax accounting of derivative financial instruments

Abstract

Financial markets debt and equity markets, suggest an immediate supply
of 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 the
future. The owners of this contract shall have the right or obligation to buy
or sell a financial asset at a specified price on a specified day. The price of
this contract is a derivative of the price of the asset. Therefore such contracts
are called derivatives. Derivative financial instruments are one of the
most complex accounting objects. The paper deals with the recognition
and measurement of derivative financial instruments in accordance with
IFRS (IFRS) 9 “Financial Instruments” and IFRS (IAS) 39 “Financial Instruments:
Recognition and Measurement”.
This article discusses the general principles of tax accounting of derivative
financial instruments adopted in Kazakhstan’s tax practice, as well
as the basic provisions of § 5. Derivative financial instruments of the Tax
Code of the Republic of Kazakhstan.