Provide two examples of commitments. Under what conditions do such commit- ments result in a decrease in Other Comprehensive Income?

The commitment results in the recognition of loss in the financial statements when the current market price of the goods purchased on commitment is found to be lesser than the commitment price

For example, a manufacturing company purchased the raw materials with committed price of $700 per ton. However, he finds that the current market price of the raw materials is $500 per ton. The commitment results in a potential loss of $200 per ton ($700-$500)