Regulation 3 Amendment to the Loan Relationships and Derivative Contracts (Change of Accounting Practice) Regulations 2004

(1)

Amend regulation 3C (prescribed debits and credits not brought into account)^f1 as follows.

(2)

In paragraph (2)—

(a)

in sub-paragraph (e)—

(i)

after “rate” where it first appears insert “currency, commodity or debt”;

(ii)

for “an interest rate risk” substitute “a particular risk”;

(iii)

for “6(5)” substitute “6(3A), (5) or (5B)”;

(iv)

for the words in paragraph (i) substitute “they offset, or are expected to offset, variability in cash flows attributable to the risk being hedged, and”;

(b)

in sub-paragraph (f) for “loan relationships with embedded derivatives” substitute “convertible securities etc: debtor relationships”.

Annotations

Footnotes

f1: Regulation 3C was inserted by regulations 2 and 5 of S.I. 2005/3383 and amended by regulations 2 and 5 of S.I. 2006/3238.