The Finance Act 2002, Schedule 26, Parts 2 and 9 (Amendment No. 2) Order 2005

Amendment of Part 2 of Schedule 26 to the Finance Act 2002

4.—(1) Amend paragraph 3 as follows.

(2) In sub-paragraph (1)(a) omit “or”.

(3) After sub-paragraph (1)(a) insert—

“(b) it is a relevant contract which—

(i) does not fall within paragraph (a) solely because it does not meet the requirement in paragraph 9(b) of Financial Reporting Standard 26 issued in December 2004 by the Accounting Standards Board, but

(ii) is treated for accounting purposes as, or as forming part of, a financial asset or liability, or”.

(4) In sub-paragraph (1)(c) after “paragraph (a)” insert “or (b)”.

(5) In sub-paragraph (3) for “which used the relevant” substitute “which used a relevant”.

(6) After sub-paragraph (3) insert—

“(4) For the purposes of sub-paragraph (1)(b), a relevant contract of a company is treated for accounting purposes as, or as forming part of, a financial asset or liability for an accounting period if, for that accounting period, it is so treated for the purposes of the relevant accounting standard used by the company for that accounting period (or would be so treated if the company were a company which used a relevant accounting standard for that accounting period in respect of the relevant contract).”.

(7) In sub-paragraph (5) for the words preceding paragraph (a) substitute “In this paragraph “relevant accounting standard” means—”.