- Latest available (Revised)
- Original (As made)
This is the original version (as it was originally made). This item of legislation is currently only available in its original format.
5.—(1) Paragraphs (2) and (3) set out the rules for calculating the exchange gain or loss arising from loan relationship assets or liabilities in the following circumstances—
(a)the asset or liability is accounted for at fair value, or
(b)that asset or liability or part of it is a hedged item in a designated fair value hedge and the risk being hedged is or includes exchange risk.
(2) Where paragraph (1) applies and—
(a)an amount is recognised in the company’s profit and loss account or income statement which arises from comparing at different times the fair value of the asset or liability (or in the case of regulation 5(1)(b) any part of it), and
(b)the change in fair value is attributable to any extent to fluctuations in the spot rate of exchange between the currency in which the asset or liability is denominated and the base currency of the company,
the exchange gain or loss is calculated as set out in paragraph (3).
(3) The exchange gain or loss for any accounting period is the change in fair value between the earlier and the later time in that period that is attributable only to fluctuations in the spot rate of exchange between the currency in which the asset or liability is denominated and the base currency of the company.
Latest Available (revised):The latest available updated version of the legislation incorporating changes made by subsequent legislation and applied by our editorial team. Changes we have not yet applied to the text, can be found in the ‘Changes to Legislation’ area.
Original (As Enacted or Made): The original version of the legislation as it stood when it was enacted or made. No changes have been applied to the text.
Explanatory Memorandum sets out a brief statement of the purpose of a Statutory Instrument and provides information about its policy objective and policy implications. They aim to make the Statutory Instrument accessible to readers who are not legally qualified and accompany any Statutory Instrument or Draft Statutory Instrument laid before Parliament from June 2004 onwards.
Access essential accompanying documents and information for this legislation item from this tab. Dependent on the legislation item being viewed this may include:
Use this menu to access essential accompanying documents and information for this legislation item. Dependent on the legislation item being viewed this may include:
Click 'View More' or select 'More Resources' tab for additional information including: