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Company Z's accounting package isn't configured to assess whether oil-seed import/sale contracts are derivatives under Ind AS 109. Most appropriate alternative per the chapter:
AOutsource derivative classification permanently to the bank counterparty
BTreat all such contracts as executory by default to keep things simple
CExtract contract data via ODBC or CSV into Excel, apply rules using IF/AND/OR/VLOOKUP to evaluate net-settlement practice and intent, and label each contract as derivative or executory
DWait for the next financial year and re-implement the ERP fully before classifying contracts
Answer & Solution
Correct answer: C. Extract contract data via ODBC or CSV into Excel, apply rules using IF/AND/OR/VLOOKUP to evaluate net-settlement practice and intent, and label each contract as derivative or executory
The chapter's illustration with Company Z suggests pulling data via ODBC/CSV into a spreadsheet and applying logical rules to classify contracts under Ind AS 109. Defaults like 'all executory' are not acceptable; outsourcing classification to a counterparty is not an accounting control.
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