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Under Ind AS 109, all derivatives that are NOT designated as hedging instruments are measured at:
ACost less impairment, with no fair-value re-measurement
BFair value, with changes recognised in other comprehensive income (OCI)
CFair value, with changes in fair value recognised in profit and loss for the period
DAmortised cost, with realized gains/losses recognised at maturity
Answer & Solution
Correct answer: C. Fair value, with changes in fair value recognised in profit and loss for the period
Ind AS 109's default category for derivatives is FVTPL (fair-value through profit or loss). Only derivatives designated as hedging instruments (and certain equity-method exceptions) receive different treatment. Amortised cost, cost-less-impairment, and FVOCI are not options for stand-alone derivatives.
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