Last update 10/08/2019
Accounting policy example
Financial assets are recognised initially at fair value, normally being the transaction price plus, in the case of financial assets not at fair value through profit or loss, directly attributable transaction costs. The subsequent measurement of financial assets depends on their classification, as set out below. The group de-recognises financial assets when the contractual rights to the cash flows expire or the financial asset is transferred to a third party.
Derivatives designated as hedging instruments in an effective hedge
These derivatives are carried on the balance sheet at fair value. The treatment of gains and losses arising from revaluation is described below in the accounting policy for derivative financial instruments and hedging activities.
Effective hedge – Example Effective hedge – Example Effective hedge – Example Effective hedge – Example Effective hedge
Effective hedge – Example
Effective hedge – Example
Derived from BP Plc’s Financial Statements 2017
https://www.bp.com/en/global/corporate/investors/results-and-reporting/annual-report.html
Accounting policy example
Financial assets are recognised initially at fair value, normally being the transaction price plus, in the case of financial assets not at fair value through profit or loss, directly attributable transaction costs. The subsequent measurement of financial assets depends on their classification, as set out below. The group derecognise financial assets when the contractual rights to the cash flows expire or the financial asset is transferred to a third party.
Derivatives designated as hedging instruments in an effective hedge
These derivatives are carried on the balance sheet at fair value. The treatment of gains and losses arising from revaluation is described below in the accounting policy for derivative financial instruments and hedging activities.
Derivatives designated as hedging instruments in an effective hedge
These derivatives are carried on the balance sheet at fair value. The treatment of gains and losses arising from revaluation is described below in the accounting policy for derivative financial instruments and hedging activities.
