All topics related to IFRS Standards.
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We have a contract with an overseas supplier to supply our company with Oxygen gas. The contract is denominated in US dollars and therefore payments will be in US dollars while our company's currency is South African rands. We pay the supplier a monthly fee for the oxygen supplied. I believe this contract contains an embedded derivative but I am not sure how we should disclose it?
It is an embedded derivative, but it doesn't have to be bifurcated if the functional currency of the supplier is the USD or if these transactions are commonly denominated in USD in SA (assuming that there are not other features in the contract). Otherwise, it has to be bifurcated and accounted for separately.