# The Loan Relationships and Derivative Contracts (Change of Accounting Practice) (Amendment) Regulations 2007, Regulation 4: Amendment to the Loan Relationships and Derivative Contracts (Change of Accounting Practice) Regulations 2004


(1) Amend regulation 4 (prescribed debits and credits) as follows.
(2) In paragraph (1) for “paragraph” substitute “paragraphs (1A) and”.
(3) After paragraph (1) insert—
“(1A) In relation to a liability representing a loan relationship to which a company is treated as a party by section 94A(2)(a) of the Finance Act 1996 to which, immediately before the start of the first accounting period of the company beginning on or after 1st January 2005—
(a) section 92A of that Act applied, but
(b) section 92A(4) of that Act did not apply,
in determining whether credits must be brought into account in accordance with section 85B(1)(b) of, or paragraph 19A(3) of Schedule 9 to, that Act regulation 12(3) of the Disregard Regulations shall be treated as not applying to the extent that the amount otherwise falling to be brought into account does not exceed the relevant amount specified in paragraph (1B).
(1B) The relevant amount is an amount equal to A less B, where—
A is the amount of all debits and credits in an accounting period ending on or after 27th December 2006 and before 11th April 2007 (“the relevant period”) in respect of the loan relationship save for—
(a) debits in relation to interest accruing in respect of the debtor relationship,
(b) credits and debits in respect of discounts, premiums, fees and other incidental costs to the extent that these amounts are not within 92A(3) of the Finance Act 1996, and
(c) debits and credits in respect of exchange gains and losses,
without regard to the amounts given by the effective interest method; and
B is the amount of debits in the relevant period in respect of the loan relationship to the extent that they are within section 92A(3) of the Finance Act 1996.”.
(4) In paragraph (5) for “paragraph (4)” substitute “this regulation”.

---
Source: https://www.legislation.gov.uk/uksi/2007/950/regulation/4 (the official version)
Page: https://openlegislation.uk/loan-relationships-and-derivative-contracts-change-of-accounting-practice-amendment-regulations-2007/regulation-4
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.