On September 1, 20X7, Polaris Entity (PE) enters into a forward contract with Aries Entity (AE) that gives AE the right to receive and PE the obligation to deliver 3,000 of PE's ordinary shares in exchange for $75,000 (i.e., $25 per share) on February 14, 20X8.
-How should PE classify this contract?

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The Answer of On September 1, 20X7, Polaris Entity (PE) enters into a forward contract with Aries Entity (AE) that gives AE the right to receive and PE the obligation to deliver 3,000 of PE's ordinary shares in exchange for $75,000 (i.e., $25 per share) on February 14, 20X8.
-How should PE classify this contract?

On September 1, 20X7, Polaris Entity (PE) Enters into a Forward