I'll go through an example of how to record a forward contract on a balance sheet from both the sellers perspective in the buyers perspective. A forward contract is a customized contract between two parties to buy or sell an asset at a specified price on a future date.First, you close out your asset and liability accounts. If you have comments or questions about completing the. AFR, please call (518) 408-4934 or our toll-free number (866) 321-8503. Contracts and movements in fair value and exchange rates. The forward contracts are customized for the specific asset(s) being hedged. We ask for the information on this form to carry out the Internal Revenue laws of the. Recognize the final gain or loss on the forward contract. Record a forward contract on the balance sheet from the seller's perspective on the date the commodity is exchanged.