Given the recent volatility in the market, FFT decided to enter into a futures contract to lock in the price of milk on April 1. The contract is traded on the Chicago Mercantile Exchange, under the symbol DC, and is for the standard contract size of 200,000 lbs. The contract was entered into at a price of $21.22 per hundredweight. As at year end, milk was trading at $19.54 per hundredweight. FFT has not recognized this futures contract in the accounts. Assume the role of the controller and prepare a report that discusses the recognition and measurement of the financial instruments noted above. The company uses IFRS.