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Hi sir,
1. I would like to ask about mar/june 19 past year question 3 (a) (ii) with regards to the contract modification.
I was a bit blured with this part why contract modification will lead to derecognise embedded derivative?2. what is the meaning of executory contract? as mentioned in the suggested answer, it shows that it is outside the scope of IFRS 9, so this should be within the scope of which accounting standards?
Thank you sir
Original contract was to pay in an unusual currency.
Revised contract is to pay in the expected currency.
Executory – settled by delivery of physical asset.
EG Forward contract to buy sausages settled in sausages. Only recognise sausages when they are physically received
Hi sir, Refer to question Crypto,
Original contract is to pay in euro
Revised contract is to pay in dollar
1. Is that means if pay in dollar, which is the functional currency of Crypto, so it is no longer need derivative to protect??? so have to derecognised?
2. If pay in currency other than its functional currency (dollar) like the original contract in euro, it may expose to foreign exchange risk, so has to use embedded derivative to avoid loss??
executory contract is under which accounting standard? IAS 37 or IFRS 15 or both? if both, in what way?
thank you sir
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