Saudi Aramco GI 230.010 IDENTIFICATION OF EMBEDDED DERIVATIVES

This document is Saudi Aramco General Instruction GI 230.010, titled Identification of Embedded Derivatives. It establishes a crucial framework for Saudi Aramco and its subsidiaries to accurately identify derivative instruments embedded within their contracts and agreements.

The instruction details the scope of review, the timing for performing these reviews, and a comprehensive methodology, including a question checklist, to identify potential embedded derivatives. It also outlines the required documentation for the review process.

This GI is essential for ensuring proper accounting treatment in accordance with International Financial Reporting Standards (IFRS) and International Accounting Standards (IAS 39). It defines key terms such as Derivative Instruments and Embedded Derivatives and explains the criteria for their separation from host contracts for fair value accounting.

This document provides practical guidance for compliance and risk management in financial reporting. Ideal for accounting managers, financial analysts, contract administrators, and HSE compliance officers working within the oil and gas sector, particularly for entities operating under Saudi Aramco's standards.