[IFRS 9 Financial Instruments replaced IAS 39. IFRS 9 applies to all items that were previously within the scope of IAS 39. Paragraphs BC25-BC28 refer to matters relevant when IFRS 2 was issued.]

BC25 The IFRS includes consequential amendments to IAS 32 and IAS 39 (both as revised in 2003) [The title of IAS 32 was amended in 2005.] to exclude from their scope transactions within the scope of IFRS 2.

BC26 For example, suppose the entity enters into a contract to purchase cloth for use in its clothing manufacturing business, whereby it is required to pay cash to the counterparty in an amount equal to the value of 1,000 of the entity’s shares at the date of delivery of the cloth. The entity will acquire goods and pay cash at an amount based on its share price. This meets the definition of a share‑based payment transaction. Moreover, because the contract is to purchase cloth, which is a non‑financial item, and the contract was entered into for the purpose of taking delivery of the cloth for use in the entity’s manufacturing business, the contract is not within the scope of IAS 32 and IAS 39.