Darlatt s/d 17

Hi tutor,

I find examiner answer to these parts b / c in this q very confusing and not clear to understand.

Part b)

1) why the forward contract is not accounted under financial instruments?

2) Tonnes of steel are non monetary items so should translated to historical rate only right?

Why did we translated also for ye and take diff to provision

I dont seem to understand whats the point here

3) i dont understand this part in q “ its felt that decline in dollar/euro exchange rate in unlikely to be reversed”.

4) deposits are not cash and cash equivalent? So they are monetary items

Why did we trate them an non monetary items.

Part c

5) Could u plz provide some main points of the answer required

I dont understand the general ideas of the answer what are we suppose to say?

Thanks