GTL Summary:

Election to treat foreign exchange gains or losses on hedging instruments as Excluded Equity Gains or Losses if they hedge currency risks in non-portfolio ownership interests and meet effective hedge standards.

Document Type: ERS - Executive Regulations
Law: DMTT Law (Decree Law No. 11 of 2024)
Decision Number: executive-regulations-172-article-15
Year: 2024
Country: 🇧🇭 Bahrain
Official Name: Article 15 - Foreign Exchange Gains or Losses Attributable to Hedging Instruments
Last updated at: 2026-02-23 12:13:40 UTC

Chapter 4 - Accounting

Article 15 - Foreign Exchange Gains or Losses Attributable to Hedging Instruments

  1. At the election of the Filing Constituent Entity, foreign exchange gains or losses included in the Financial Accounting Net Income or Loss of a Constituent Entity located in the Kingdom shall be treated as an Excluded Equity Gain or Loss to the extent that all of the following apply:

    1. Such foreign exchange gains or losses are attributable to hedging instruments that hedge the currency risk in Ownership Interests other than Portfolio Shareholdings.

    2. Such foreign exchange gains or losses are recognised in Other Comprehensive Income in the Consolidated Financial Statements.

    3. The hedging instrument is considered an effective hedge under the Acceptable Financial Accounting Standard or Authorised Financial Accounting Standard used in the preparation of the Consolidated Financial Statements.

  2. The election referred to in paragraph A of this Article is a Five-Year Election which can be made in accordance with Article 20 of the Law.

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