In late 2011, Daisy Company entered into a noncancelable purchase contract for which the contract price is now greater than the market price, and Daisy expects that losses will occur when the purchase is executed in early 2012.Under IFRS, Daisy should recognize a liability and corresponding loss in 2011.

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Under IFRS, Daisy should recognize a liability and corresponding loss in 2011 for the noncancelable purchase contract with a contract price greater than the market price where losses are expected to occur.

In Late 2011, Daisy Company Entered into a Noncancelable Purchase