• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
Free ACCA & CIMA online courses from OpenTuition

Free ACCA & CIMA online courses from OpenTuition

Free Notes, Lectures, Tests and Forums for ACCA and CIMA exams

  • ACCA
  • CIMA
  • FIA
  • OBU
  • Books
  • Forums
  • Ask AI
  • Search
  • Register
  • Login
  • ACCA Forums
  • Ask ACCA Tutor
  • CIMA Forums
  • Ask CIMA Tutor
  • FIA
  • OBU
  • Buy/Sell Books
  • All Forums
  • Latest Topics

20% off ACCA & CIMA Books

OpenTuition recommends the new interactive BPP books for September 2025 exams.
Get your discount code >>

Forward/call options Repurchase agreements

Forums › ACCA Forums › ACCA FR Financial Reporting Forums › Forward/call options Repurchase agreements

  • This topic has 1 reply, 2 voices, and was last updated 5 years ago by f6ali.
Viewing 2 posts - 1 through 2 (of 2 total)
  • Author
    Posts
  • May 5, 2020 at 8:39 pm #570087
    elizamargaret
    Member
    • Topics: 8
    • Replies: 5
    • ☆

    Hi there,

    If a forward/call option is accounted for as a lease under IFRS 16 when the repurchase amount is less than the original selling price, where does the gain go to when the option is carried out? The original amount paid is recognised as a financial liability and then the entity buys back the asset but at a lower price, so where does the difference go?

    The BBP text book gives an example for a forward/call option where the repurchase price is equal to or greater than the original selling amount and the excess payment over original selling price goes to interest expense. Should the above go to interest received?

    Thanks a mill!
    Eliza

    May 9, 2020 at 1:53 pm #570401
    f6ali
    Member
    • Topics: 10
    • Replies: 342
    • ☆☆☆

    You have already posted the question in Ask the Tutor Forum, there’s no need to post it here. You will be answered by the tutor in due time.

    Regarding your question, if i recall correctly, hedge accounting is not part of Financial Reporting syllabus. It is examined in Strategic Business Reporting.

  • Author
    Posts
Viewing 2 posts - 1 through 2 (of 2 total)
  • You must be logged in to reply to this topic.
Log In

Primary Sidebar

Donate
If you have benefited from our materials, please donate

ACCA News:

ACCA My Exam Performance for non-variant

Applied Skills exams is available NOW

ACCA Options:  “Read the Mind of the Marker” articles

Subscribe to ACCA’s Student Accountant Direct

ACCA CBE 2025 Exams

How was your exam, and what was the exam result?

BT CBE exam was.. | MA CBE exam was..
FA CBE exam was.. | LW CBE exam was..

Donate

If you have benefited from OpenTuition please donate.

PQ Magazine

Latest Comments

  • RashidMh on MA Chapter 1 Questions Accounting for Management
  • John Moffat on Relevant Cash Flows for DCF Relevant Costs (example 1) – ACCA Financial Management (FM)
  • John Moffat on Accounting for Management – ACCA Management Accounting (MA)
  • Hsaini on Accounting for Management – ACCA Management Accounting (MA)
  • kennedyavege@2023 on Relevant Cash Flows for DCF Relevant Costs (example 1) – ACCA Financial Management (FM)

Copyright © 2025 · Support · Contact · Advertising · OpenLicense · About · Sitemap · Comments · Log in