The Three Scenarios for IFRS 9 and the Own Use Exemption

IFRS 9 does apply to some types of contracts to buy or sell non-financial items. So for example, a contract to buy raw materials to produce the goods that the company sells. The submission asked three different scenarios, four three different scenarios whether the own use exemption is met. If the own use exception is not met, it will be accounted for in the same way as a derivative that is at the value of profit or loss. On the other hand, if theown use exception is met, the contract will be treated as an executive contract and nothing would be recorded under one of the parties under the contract.