Accounting for Financial Guarantee

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..... aults. Here the financial guarantee may actualize in contingent circumstances therefore, it shall be constituted as financial instrument as per Ind AS 32. Recognition and Measurement These contracts should be recognised as financial liabilities as per Ind AS 109. However, if financial Instruments meets the definition of Insurance Contracts, then those will be covered under Ind AS 104 I .....

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..... se borrower has not defaulted JE Financial Guarantee A/c Dr. XXX To Profit Loss A/c XXX In case borrower has defaulted in repayment of borrowing JE Financial Guarantee A/c Dr. XXX Profit Loss A/c Dr. XXX (Balancing amount if any) To bank A/c XXX To Profit Loss A/c XXX (Balancing amount if any) - Manuals - Read .....

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