Identify and Explain the Methods Required Under AASB 139 to Account

question 26

Essay

Identify and explain the methods required under AASB 139 to account for a futures contract both at its inception and for subsequent changes in its fair value.

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Definitions:

Gainsharing Award

A type of incentive program where employees receive financial bonuses based on improvements in the company's performance, which they contributed to.

Scanlon Plan

A gain-sharing program designed to motivate employees to increase productivity through a shared benefits system where cost savings are passed on to employees.

Long-Term Incentives

Compensation plans designed to reward employees over a longer period, often tied to the company's performance, to foster commitment and align employees' interests with those of the company.

Lump-Sum Bonuses

One-time payments given to employees as a reward for exceptional performance, separate from their regular salary.