Designation of contracts deal a non-financial item on first time aoption
Is there a choice available with an entity in respect of designation of contracts to buy or sell a non-financial item?
Ind AS 109 allows a contact to buy or sell a non-financial item to be designated at fair value through profit or loss provided it is done at inception without undue delay and it reduces an accounting mismatch. Ind AS 101, however, permits such contracts to be designated at fair value through profit or loss at the date of transition to Ind AS provided it meets the requirements mentioned above. In addition to this, the entity should designate all similar contract as measured at fair value through profit or loss.