Which ICDS would govern derivative instruments.

Manual - ICDS VIII : Securities

ICDS -VI (subject to para 3 of ICDS-VIII) provides guidance on accounting for derivative contracts such as forward contracts and other similar contracts. For derivatives, not within the scope of ICDSVI, provisions of ICDS-I would apply. Derivative instruments, which are capital assets, would not be governed by ICDS at all.

Dated: 31-8-2017