- This topic has 1 reply, 2 voices, and was last updated 3 years ago by
.
Viewing 2 posts - 1 through 2 (of 2 total)
- Posts
A contract to buy or sell a non-financial item (such as inventory or property, plant and equipment) is only a derivative if:
1. it can be settled net in cash (OR USING ANOTHER FINANCIAL ASSET), and
2. the contract was not entered into for the purpose of receipt or delivery of
the item to meet the entity’s operating requirements.sir can you give an example for the 1st point where a financial asset other than cash and equity are used to settle the transaction on a net basis?
Viewing 2 posts - 1 through 2 (of 2 total)
- You must be logged in to reply to this topic.