Derivative

Hi,Sir for past year question from Mar 2019 Q3 a) II)

Question

The directors of Hudson wish to recognise a material deferred tax asset in relation to $250 million of unused trading losses which have accumulated as at 31 December 20X2. Hudson has budgeted profits for $80 million for the year-ended 31 December 20X3. The directors have forecast that profits will grow by 20% each year for the next four years.The market is currently depressed and sales orders are at a lower level for the first quarter of 20X3 than they were forthe same period in any of the previous five years. Hudson operates under a tax jurisdiction which allows for trading losses to be only carried forward for a maximum of two years.

Ans: At the date of the modification of the contract to the functional currency of Crypto, there is a significant change to the contract which will trigger a reassessment of its position under IFRS 9. As the contract no longer has a non-closely related embedded derivative, the entire arrangement will be accounted for prospectively as an executory contract whichis outside the scope of IFRS 9. The embedded derivative will be derecognised and it is likely that Crypto will have to paythe counterparty 2 million euros in compensation.

My questions are why there are no longer has a non-closely related embedded derivative after modification and hybrid contract is measured at what as derivative is measured at FVTPL?