Paragraph 11 Financial instrumentsF1

References to “derivative financial instruments” are deemed to include commodity-based contracts that give either contracting party the right to settle in cash or some other financial instrument, except when such contracts –

(a)

were entered into in order to meet the society’s expected purchase, sale or usage requirements and continue to meet those requirements;

(b)

were designated for such purpose at their inception; and

(c)

are expected to be settled by delivery of the commodity.

Annotations

Textual amendments

F1: Sch. 9 paras. 11,12 inserted (1.10.2005 with effect as respects financial years which begin on or after 1.1.2005 and end on or after October 2005) by The Friendly Societies (Accounts and Related Provisions) (Amendment) Regulations 2005 (S.I. 2005/2210), regs. 1(2), 6(4)