An entity enters into forward contracts to acquire securities that will be accounted for under Statement 115 or purchases options to acquire those securities. The forward contracts and options are not covered by Statement 115. The forward contracts, purchased options, and underlying securities are denominated in the same currency as the entity's functional currency and there is a period of time between the date the forward contracts are entered into or the options are purchased and the date the underlying securities are acquired. This Issue addresses only the accounting for forward contracts and purchased options whose terms require physical settlement of the securities. The issue is how to account for forward contracts and purchased options with no intrinsic value at acquisition that are entered into to purchase securities that will be accounted for under Statement 115 during the period that the forward or option is outstanding and when the securities are acquired. EITF DISCUSSION Copyright © 2006, Financial Accounting Standards Board Not for redistributio
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