The following information applies to Datu Corporation’s sale of 10,000 foreign currency units  under a forward contract dated November 1, 2020 for delivery on January 21, 2021:    November 1, 2020  December 31, 2020 Spot rates   30-day futures 90-day futures P0.80  0.79  0.78 P0.83  0.82  0.81

FINANCIAL ACCOUNTING
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ISBN:9781259964947
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Chapter1: Financial Statements And Business Decisions
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The following information applies to Datu Corporation’s sale of 10,000 foreign currency units  under a forward contract dated November 1, 2020 for delivery on January 21, 2021: 

 

November 1, 2020 

December 31, 2020

Spot rates  

30-day futures 90-day futures

P0.80 

0.79 

0.78

P0.83 

0.82 

0.81

 

Datu entered into a forward contract to speculate in the foreign currency. 

6. In Datu’s income statement for the year December 31, 2020, 

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