a) RBI vide notification no. RBI/2020-21/15 DOR (NBFC).CC.PD.No.116/22.10.106/2020-21 dated July 24, 2020 has decided on Implementation of Indian Accounting Standards.

b) It has been decided that the unrealised gain/loss on a derivative transaction undertaken for hedging may be offset against the unrealised loss/gain recognized in the capital (either through Profit or Loss or through Other Comprehensive Income) on the corresponding underlying hedged instrument. If after such offset and netting with unrealised gains/losses on other financial instruments, there are still net unrealised gains, the same should be excluded from regulatory capital as required by paragraph 3 of the annex to the said circular.

c) It is also clarified that unrealized gains/losses shall be considered net of the effect of taxation. All other instructions remain unchanged.