The Exchange Gains and Losses (Transitional Provisions) Regulations 1994

The cumulative gain and the cumulative loss

10.—(1) Subject to regulation 15, in the case of any existing asset or liability held or owed by a company as respects which an initial exchange gain or loss accrues to the company for an accrual period (“the current period”), there shall be calculated the aggregate amount of initial exchange gains and losses which have accrued as respects the asset or liability in question for all earlier accrual periods and for the current period, and that aggregate amount—

(a) if positive, shall be the cumulative gain for that asset or liability for the current period, and

(b) if negative, shall be the cumulative loss for that asset or liability for the current period,

but in cases where that aggregate amount is zero there shall be either a cumulative gain or a cumulative loss equal to zero for the period, according to whether there was a cumulative gain or a cumulative loss of any amount (including zero) for the accrual period immediately preceding the current period.

(2) For the purposes of paragraph (1) above, the amount of any initial exchange gain or loss shall be determined disregarding the following provisions of this Part and the regulation 2(2) provisions.