Paragraph 44A

England, Wales and Scotland

(1)

Subject to sub-paragraphs (2) to (4), financial instruments (including derivatives) may be included at fair value.

(2)

Sub-paragraph (1) does not apply to financial instruments which constitute liabilities unless–

(a)

they are held as part of a trading portfolio, or

(b)

they are derivatives.

(3)

Sub-paragraph (1) does not apply to–

(a)

financial instruments (other than derivatives) held to maturity;

(b)

loans and receivables originated by the company and not held for trading purposes;

(c)

interests in subsidiary undertakings, associated undertakings and joint ventures;

(d)

equity instruments issued by the company;

(e)

contracts for contingent consideration in a business combination;

(f)

other financial instruments with such special characteristics that the instruments, according to generally accepted accounting principles or practice, should be accounted for differently from other financial instruments.

(4)

If the fair value of a financial instrument cannot be determined reliably in accordance with paragraph 44B, sub-paragraph (1) does not apply to that financial instrument.

(5)

In this paragraph–

“associated undertaking” has the meaning given by paragraph 20 of Schedule 4A; and
“joint venture” has the meaning given by paragraph 19 of that Schedule.

Notes on Schedule 9

Textual amendments

F1: Sch. 9 repealed (6.4.2008) by Companies Act 2006 (c. 46), ss. 1295, 1300, Sch. 16; S.I. 2007/3495, art. 8(a), Sch. 2 Pt. 1 (with arts. 7, 12); Sch. 9 para. 3(4)(5) and certain words in Sch. 9 para. 3(3)(a) are expressed to be repealed (6.4.2008 with effect as stated in Sch. 1 para. 91(2) of the amending S.I.) by S.I. 2008/948, arts. 2(1), 3, Sch. 1 para. 90(1), Sch. 2 (with arts. 6, 11, 12)

Notes on Part I

Textual amendments

F1: Sch. 9 Pt. I paras. 1-87 inserted (2.12.1991) by S.I. 1991/2705, regs. 5(4), 9, Sch. 1

Modifications

C1: Sch. 9 Pt. I modified (coming into force in accordance with s. 3 of the amending Act) by 1999 c. iv, ss. 3, 7(6)
C2: Sch. 9 Pt. 1 extended (24.6.2003) by The Uncertificated Securities (Amendment) (Eligible Debt Securities) Regulations 2003 (S.I. 2003/1633), reg. 15, Sch. 2 para. 2(e)