SCHEDULE 7Loan relationships and derivative contracts
PART 2Derivative contracts: amendments of Part 7 of CTA 2009
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(1)
Section 597 (amounts recognised in determining a company's profit or loss) is amended as follows.
(2)
In subsection (1), for the words from “recognised”, in the second place, onwards substitute “
that is recognised in the company's accounts for the period as an item of profit or loss
”
.
(3)
“(1A)
The reference in subsection (1) to an amount recognised in the company's accounts for the period as an item of profit or loss includes a reference to an amount that—
(a)
was previously recognised as an item of other comprehensive income, and
(b)
is transferred to become an item of profit or loss in determining the company's profit or loss for the period.
(1B)
In subsections (1) and (1A) “item of profit or loss” and “item of other comprehensive income” each has the meaning that it has for accounting purposes.”
(4)
Omit subsections (2) and (3).