Sir,
Could you please explain the meaning of this line as I am unable to get a clear picture of this.
The contract was not entered into for the purpose of receipt or delivery of the item to meet the entity's operating requirements.
Thanks in advance
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Derivative
7y ago#1Hi,
A derivative is usually used or speculative trading purposes, so if we buy it as part of our ordinary operations then we are not speculating and so it is not a derivative and is treated as a normal financial instrument.
Thanks
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