This is the value, as at the relevant date, of derivative financial instruments held by the reporting entity. This item is to be determined in accordance with accounting standards.A derivative is a financial instrument that is derived from some other asset, index, value or other variable (known as the underlying). Derivatives allow risk about the price of the underlying asset to be transferred from one party to another. 

Netting should not be applied when reporting amount swithin the Statement of Derivative Activity unless specifically allowed by the relevant prudential (and/or) accounting standard.