An entity must recognise a financial asset or a financial liability when it becomes subject to the contractual provisions of the instrument.Which of the following are NOT recognised?
A)Trade debtors.
B)Forward contracts at commitment date.
C)Planned future transactions.
D)Option contracts when the holder becomes a party to the contract.

Question

Quizplus · Accepted Answer

Planned future transactions are not recognised until they become binding contracts. The others are recognised as financial assets or liabilities.

An Entity Must Recognise a Financial Asset or a Financial