GTL Summary:

Requires consistent debt/equity classification of financial instruments between group members, following the classification used by the issuer.

Document Type: ERS - Executive Regulations
Law: DMTT Law (Decree Law No. 11 of 2024)
Decision Number: executive-regulations-172-article-22
Year: 2024
Country: 🇧🇭 Bahrain
Official Name: Article 22 - Treatment of Financial Instruments
Last updated at: 2026-02-23 12:13:40 UTC

Chapter 4 - Accounting

Article 22 - Treatment of Financial Instruments

  1. A financial instrument issued by a Constituent Entity to a Constituent Entity which is a member of the same Multinational Enterprise Group shall be classified as debt or equity consistently for both the issuer and the holder of the financial instrument and accounted for accordingly in the computation of their Constituent Entity Income or Loss.

  2. Where the Constituent Entities have classified a financial instrument differently, the classification adopted by the issuer of the financial instrument shall be used by the issuer and the holder of the financial instrument in computing Constituent Entity Income or Loss.

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