According to IFRS 9, which of the following statements pertaining to a forward contract is true?

A) A forward contract is valued using spot rates throughout its life with any gains or losses to be deferred and amortized as they occur.
B) A forward contract is valued at fair value throughout its life with any gains or losses to be deferred and amortized as they occur.
C) A forward contract is valued using spot rates throughout its life with any gains or losses to be taken into income as they occur.
D) A forward contract is remeasured at fair value throughout its life, with any gains or losses reflected in net income as they occur.

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Final Answer : D, Explanation :  According to IFRS 9, a forward contract is remeasured at fair value throughout its life, with any gains or losses reflected in net income as they occur. Therefore, choice D is the correct answer. According to IFRS 9, a forward contract is remeasured at fair value throughout its life, with any gains or losses reflected in net income as they occur. This means that any changes in fair value of the forward contract will be immediately recognized in the income statement.

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