The Companies (1986 Order) (International Accounting Standards and Other Accounting Amendments) Regulations (Northern Ireland) 2004

9.—(1) Chapter IV (interpretation of Part I) is amended as follows.

(2) In paragraph 81 (general interpretation)(1), at the appropriate place, insert –

““investment property” means land held to earn rent or for capital appreciation;”.

(3) After paragraph 81 insert –

“Financial instruments

81A.   For the purposes of this Part, references to “derivatives” include commodity-based contracts that give either contracting party the right to settle in cash or some other financial instrument, except when such contracts –

(a) were entered into for the purpose of, and continue to meet, the company’s expected purchase, sale or usage requirements,

(b) were designated for such purpose at their inception, and

(c) are expected to be settled by delivery of the commodity.

81B.— (1) The expressions listed in sub-paragraph (2) have the same meaning in section BA of Chapter II and paragraphs 65A to 65C and 81A as they have in Council Directives 78/660/EEC on the annual accounts of certain types of companies and 91/674/EEC on the annual accounts and consolidated accounts of insurance undertakings, as amended(2).

(2) Those expressions are “available for sale financial asset”, “business combination”, “commodity-based contracts”, “derivatives”, “equity instrument”, “exchange difference”, “fair value hedge accounting system”, “financial fixed asset”, “financial instrument”, “foreign entity”, “hedge accounting”, “hedge accounting system”, “hedge items”, “hedging instrument”, “held for trading purposes”, “held to maturity”, “monetary item”, “receivables”, “reliable market” and “trading portfolio”.”.

(4) In paragraph 84(c) (interpretation of references to provisions for risks and charges)(3) –

(a) for “provisions for other risks and charges” substitute “provisions for other risks”, and

(b) for “or loss” substitute “the nature of which is clearly defined and”.

(1)

Paragraph 81 was amended by S.I. 2001/3649

(2)

O.J. No. L222 of 14.8.1978, page 11, and O.J. No. L374 of 31.12.1991, page 7, as amended in particular by Article 4 of Directive 2003/51/EEC of the European Parliament and of the Council (O.J. No. L178 of 17.7.2003, page 16)

(3)

Paragraph 84(c) was amended by S.R. 1997 No. 314