Writing an Analysis, Derivatives Definition Facts: You are a corporate accountant for Omega, Inc. Todays...
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Writing an Analysis, Derivatives Definition Facts: You are a corporate accountant for Omega, Inc. Todays date is 12/31/20x6. Youve been asked to review a contract in which Omega agrees to purchase 500 shares of GE stock from Zeta (seller) in 1 year (on 12/31/20x7), for $30 per share. Said another way, Omega has entered into a forward contract for the purchase of stock. Required: Act as though you are writing just the Analysis section of an issues memo, and research the following question: Does Omegas contract with Zeta meet the definition of a derivative? In your response, include applicable excerpts and guidance sandwiches that relate the guidance to this fact pattern. In your research, you need only consider the following paragraphs from the guidance: ASC 815-10-05-4 ASC 815-10-10-1 ASC 815-10-15-83, 15-88, 15-92, 15-96 ASC 815-10-15-119 and 120 Please do not include all of these paragraphs in your analysis; choose only those paragraphs that are most compelling and relevant to this issue. Assume that no scope exceptions apply.
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