Amendment to the Loan Relationships and Derivative Contracts (Disregard and Bringing into Account of Profits and Losses) Regulations 2004
7.—(1) Amend regulation 6 (rules about fair value profits and losses) as follows.
(2) In paragraph (6)—
(a)after “paragraph” insert “(6A) and”;
(b)for “these Regulations apply” substitute “regulations 7 and 8, or regulation 9 applies to that company”; and
(c)for “31st March 2005” substitute “1st October 2005”.
(3) After paragraph (6) insert—
“(6A) In any case where a company—
(a)does not use fair value accounting in relation to its derivative contracts for an accounting period beginning on or after 1st January 2005, and
(b)begins to use fair value accounting in a subsequent accounting period (“the subsequent period”) in relation to contracts to which regulations 7 or 8, or regulation 9 apply and to which it is a party at the start of that period,
an election under paragraph (3) or (5) shall be made before the start of the subsequent period.”.
(4) In paragraph (7) for “within” substitute “under”.