Derivatives In Financial Statements

A new decree in Italy enables more openness from legislators to recognise derivative instruments in the financial statements of ITA Gaap entities. These had previously been omitted due to concerns they would impact companies' assets in periods of instability.

The recognition of derivative instruments took on fundamental importance with the approval of Legislative Decree no. 139/2015; while in the financial statements for previous years they were only disclosed in the notes, the new rules require them also to be recognised in the financial statements of ITA GAAP entities, that are measured at fair value, along with the hedging relationship. Such instruments are now accepted as instruments for hedging risk.