ABC Inc. invested in a forward contract for speculative purposes. The cost of the contract was $3,500.
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Question:
ABC Inc. invested in a forward contract for speculative purposes. The cost of the contract was $3,500. At year end the contract had not been exercised and the value of the contract was $5,000. Which of the following most accurately describes the accounting for the contract under IFRS?
O Write up the value of the contract to $5,000 and recognize $1,500 gain in income
O Write up the value of the contract to $5,000 and include the $1,500 gain in other comprehensive income,
O Do not write up the value of the contract and do not recognize any gain
O Write up the value of the contract to $5,000 and do not include the $1,500 gain in the income statement or other comprehensive income
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