December 2010

Margie has entered into a contract with a producer to purchase 350 tonnes of wheat.
The purchase price will be settled in cash at an amount equal to the value of 2500 of Margie share. Margie may settled the contract at any time by paying the producer an amount equal to the current market value of 2500 of Margie shares, less the market value of 350 tonnes of wheat. Margie has entered into the contract as part of hedging strategy and has no intention of taking physical delivery of wheat. Margie wishes to treat this transaction as a share based payment transaction under IFRS 2

Sir i want to know whether this should be treated under ifrs 2 or not (sir please give an explanation of your answer so that i can understand)??????

and

if it is treated as per ifrs 2 then should it be measured at fair value of the wheat or it should measured at fair value of share at each reporting date?????