Explanatory note

These Regulations amend the Loan Relationships and Derivative Contracts (Change of Accounting Practice) Regulations 2004 (“the principal Regulations”) which made provision for certain debits and credits not to be brought into account in the first accounting period beginning on or after 1st January 2005 but to be brought into account in later accounting periods.

Regulation 1 provides for citation, commencement and effect.

Regulation 2 introduces the amendments to the principal Regulations.

Regulation 3 amends regulation 2 (interpretation) of the principal Regulations.

Regulation 4 amends regulation 3A (prescribed debits and credits brought into account over prescribed period) of the principal Regulations consequent upon the amendment made by regulation 3.

Regulation 5 substitutes regulation 3B of the principal Regulations to introduce a provision to bring into account debits and credits in respect of dormant accounts of banks and building societies in accounting periods beginning on or after 1st January 2008.

A full regulatory impact assessment has not been produced for this instrument as no impact on the private or voluntary sectors is foreseen.