Regulation 4 Amendments to the Exchange Gains and Losses (Bringing into Account Gains or Losses) Regulations 2002

(1)

Amend regulation 3 as follows.

(2)

In paragraph (1)—

(a)

for “either” substitute “any”, and

(b)

after “paragraphs” insert “(1A),”.

(3)

After paragraph (1) insert—

“(1A)

The circumstances prescribed by this paragraph are that—

(a)

there is a disposal of an asset by a company in an accounting period beginning on or after 1st January 2005; and

(b)

in relation to a liability representing a loan relationship or a derivative contract of the company, an exchange gain or loss arose to the company which—

(i)

was recognised in the company’s statement of recognised gains and losses or statement of changes in equity and was set off by or against an amount which represents the whole or part of an exchange gain or loss arising in relation to the asset, or

(ii)

was prescribed by regulation 3 or 4 of the Disregard Regulations.”.

(4)

In paragraph (2)(a) after “1st October 2002” insert “but before 1st January 2005”.