Regulation 4 Amendments to the Loan Relationships and Derivative Contracts (Change of Accounting Practice) Regulations 2004

for paragraph (2) substitute—

“(2)

Subject to paragraphs (2A) and (7A), one tenth of the applicable amount must be brought into account for each year in the period of ten years beginning with the later period.

(2A)

Where the applicable amounts relate to own credit risk which would be recognised in the company’s accounts as an item of other comprehensive income on the application of the relevant recognition and measurement provisions of International Financial Reporting Standard 9 issued by the International Accounting Standards Board on 24th July 2014, a percentage of the applicable amounts must be brought into account for each year in the period of five years beginning with the later period as follows—

1st year	40%
2nd year	25%
3rd year	15%
4th year	10%
5th year	10%

”

in paragraphs (3) and (4) , after “(2)” insert “or (2A)”,

in paragraph (5) for “paragraphs (7A) and (7B)” substitute “paragraph (7A)”,

in paragraph (7A)—

omit paragraph (7B), and

at the end insert—

“(9)

In this regulation—

• “own credit risk” has the meaning it has for accounting purposes;

• “prescribed period” means the period of ten years referred to in paragraph (2) or the period of five years referred to in paragraph (2A).”.