||Interest Rate Derivative Contracts - Forwards
This is the value, as at the relevant date, of interest rate forward contracts, consistent with the classification and measurement basis used for derivatives by institutions in accordance with accounting standards.A forward contract is an agreement to exchange a predetermined amount of currency, commodity, or other financial instrument at a specified future date and at a predetermined price.An interest rate contract is any contract that transfers the interest rate risk of an underlying asset from one party to another.Derivatives are generally defined as those instruments/contracts, where the value is based on other products, and/or on prices associated with financial products. Derivative contracts involve:- Future delivery, receipt or exchange of financial items such as cash or another derivative instrument; or- Future exchange of real assets for financial items where the contract may be tradeable and has a market value.The contracts can either be binding on both parties (e.g. as with a currency swap) or subject to the exercise by one party of a right contained within the contract (as with options).Report this item regardless of whether favourable or unfavourable to the reporting entity.
Netting should not be applied when reporting amounts within the Statement of Derivative Activity.