The      Accounting Advisory Services (AAS) team at BDO India is pleased to share, 'THE STANDARD STANCE' - An expert insight into key accounting matters. Each monthly issue of the publication spotlights and discusses a key accounting matter noteworthy for organisations to stay ahead in their business journeys.

This issue of THE STANDARD STANCE, 'FINANCIAL GUARANTEE CONTRACTS UNDER IND AS 109', provides guidance on accounting for FGCs under Ind AS 109 “Financial Instruments".

Financial Guarantee Contracts (FGC) come in various forms. The accounting of FGCs under Ind AS does not depend on their legal form but requires analysing their terms and conditions to determine the right accounting treatment. FGCs are commonly seen within group entities, which can make things complex in each group entity's standalone financial statements. This publication covers the essential aspects from identification and measurement to practical challenges and illustrative examples to assist in understanding FGCs and navigating accounting complexities for such items.

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