# The Finance Act 2002, Schedule 26, Parts 2 and 9 (Amendment No. 2) Order 2005, Article 22: Amendment of Part 9 of Schedule 26 to the Finance Act 2002


(1) Amend paragraph 45M as follows.
(2) In sub-paragraph (1)—
(a) after “where” insert “for an accounting period”;
(b) in paragraph (a) for “derivative” substitute “relevant”;
(c) for paragraph (b) substitute—
“(b) the contract is a derivative contract falling within paragraph 3(1)(a) or (b),”; and
(d) at the end of paragraph (c) insert—
“, and
(d) the host contract is treated for accounting purposes as, or as forming part of, a financial asset.”.
(3) In sub-paragraph (2)(a) omit “which is a zero coupon bond”.
(4) Omit sub-paragraph (3).
(5) After sub-paragraph (4) insert—
“(5) For the purposes of sub-paragraph (1)(d), the host contract is treated for accounting purposes as, or as forming part of, a financial asset for an accounting period if, for that accounting period,—
(a) it is so treated for the purposes of the relevant accounting standard used by the company for that accounting period, or
(b) it would be so treated if the company used a relevant accounting standard for that accounting period in respect of the host contract.
(6) Sub-paragraph (5) of paragraph 3 (meaning of “relevant accounting standard”) applies for the purposes of sub-paragraph (5) as it applies for the purposes of sub-paragraphs (3) and (4) of that paragraph.”.

---
Source: https://www.legislation.gov.uk/uksi/2005/2082/article/22 (the official version)
Page: https://openlegislation.uk/finance-act-2002-schedule-26-parts-2-and-9-amendment-no-2-order-2005/article-22
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.