Forums
Back
As 11
Accountancy
How to identify that this is a speculative transaction
Answers (4)
If nothing is mentioned, you need to check if the company just purchases and sells the forward contract. If there is an underlying say a receivable or a payable, then it is not speculative. For e.g. if a company enters into a forward contract to protect itself from loss on a foreign currency loan, it is not speculative.
Your Reply