# The Friendly Societies (Accounts and Related Provisions) Regulations 1994, Paragraph 24E: Accounting for changes in value of financial instruments


(1) This paragraph applies where a financial instrument is valued in accordance with paragraph 24A or 24C.
(2) Notwithstanding paragraph 4 of Part I of this Schedule, and subject to sub-paragraphs (3) and (4) below, a change in the value of the financial instrument shall be included in the income and expenditure account.
(3) Where–
(a) the financial instrument accounted for is a hedging instrument under a hedge accounting system that allows some or all of the change in value not to be shown in the income and expenditure account; or
(b) the change in value relates to an exchange difference arising on a monetary item that forms part of a society’s net investment in a foreign entity,
the amount of change in value shall be credited to or (as the case may be) debited from a separate reserve (“the fair value reserve”).
(4) Where the instrument accounted for–
(a) is an available-for-sale financial asset; and
(b) is not a derivative financial instrument,
the difference in value may be credited to or (as the case may be) debited from the fair value reserve.

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Source: https://www.legislation.gov.uk/uksi/1994/1983/schedule/6/paragraph/24E (the official version)
Page: https://openlegislation.uk/friendly-societies-accounts-and-related-provisions-regulations-1994/schedule-6/paragraph-24E
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.