A contract to which (b) or (c) applies is not entered into for the purpose of the

receipt or delivery of the non-financial item in accordance with the entitys

expected purchase, sale or usage requirements and, accordingly, is within the
scope of this Standard. Other contracts to which paragraph 2.4 applies are
evaluated to determine whether they were entered into and continue to be held
for the purpose of the receipt or delivery of the non-financial item in accordance
with the entitys expected purchase, sale or usage requirements and,
accordingly, whether they are within the scope of this Standard.
2.7 A written option to buy or sell a non-financial item that can be settled net in
cash or another financial instrument, or by exchanging financial instruments,
in accordance with paragraph 2.6(a) or 2.6(d) is within the scope of this
Standard. Such a contract cannot be entered into for the purpose of the receipt
or delivery of the non-financial item in accordance with the entitys expected
purchase, sale or usage requirements.

Chapter 3 Recognition and derecognition

3.1 Initial recognition

3.1.1 An entity shall recognise a financial asset or a financial liability in its

statement of financial position when, and only when, the entity becomes
party to the contractual provisions of the instrument (see
paragraphs B3.1.1 and B3.1.2). When an entity first recognises a financial
asset, it shall classify it in accordance with paragraphs 4.1.14.1.5 and
measure it in accordance with paragraphs 5.1.15.1.3. When an entity first
recognises a financial liability, it shall classify it in accordance with
paragraphs 4.2.1 and 4.2.2 and measure it in accordance with
paragraph 5.1.1.

Regular way purchase or sale of financial assets

3.1.2 A regular way purchase or sale of financial assets shall be recognised and
derecognised, as applicable, using trade date accounting or settlement
date accounting (see paragraphs B3.1.3B3.1.6).

3.2 Derecognition of financial assets

3.2.1 In consolidated financial statements, paragraphs