Regulatory Alerts2003-07-24
Instruction No. 2003-03 of July 24, 2003, amending Instructions No. 94-04 and No. 94-07 of March 14, 1994, regarding the accounting for interest rate derivative instruments and securities transactions
The Banking Commission issued Instruction No. 2003-03 to amend the accounting rules for interest rate derivatives and securities transactions by aligning them with updated regulatory frameworks. The instruction modifies Instruction No. 94-04 to redefine eligible hedged items, require correlation between hedged elements and underlying instruments for option purchases, and mandate immediate profit recognition for hedges involving market-valued elements. Additionally, it updates Instruction No. 94-07 by removing obsolete paragraphs and clarifying the accounting treatment for hedges associated with securities.
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