IAS 39 — Unit of account for forward contracts with volumetric optionality

Date recorded:


The IFRIC received a request to add an item to its agenda on providing guidance on whether a contract that (a) obliges an entity to deliver (sell) at a fixed price a fixed number of units of a non-financial item that is readily convertible to cash and (b) that provides the counterparty with the option to purchase also at a fixed price a fixed number of additional units of the same item can be assessed as two separate contracts for the purpose of applying paragraphs 5─7 of IAS 39.


Decision not to add

March 2010



Although the IFRIC recognised that significant diversity exists in practice, it noted that the Board has accelerated its project to develop a replacement for IAS 39 and expects to issue a new standard by the end of 2010. The Board will consider the scope of IAS 39, including the guidance about contracts to buy or sell non-financial items in IAS 39.5─7, as part of the replacement for that standard. Therefore, the IFRIC decided not to add this issue to its agenda.


IFRIC reference: IAS 39-25

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