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Hi sir , my question is why they didn’t consider this to be a derivative? And why they consider the purchase of steel to be non financial instrument . ( I remember in your lecture in derivative you mention the example of oranges and if I enter a Forward contract to fix a price in the future).
I am confused, please assist.Another thing where can I find the june 2018 past paper because i just found this part of question not the whole paper ( on ACCA They released Past papers only form Sep2018 onwards).
I enter forward contact to buy oranges – settlement in oranges – NOT a derivative – known as executor contract
I enter forward contact to buy oranges – settlement in cash- IS a derivative – financial asset or liabilityPlease post your other question separately
One more question related to derivative, didn’t get the difference between derivative and hedge accounting are all derivative fall under hedge accounting ?
Thanks in advance
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