Commentary on Sections Overview Chapter 4: Further provision about credits and debits to be brought into account Section 614: Change of accounting policy involving change of value
1666.This section treats the increase or decrease in the carrying value of a derivative contract on a change of accounting policy as a credit or debit to be brought into account in the later period. It is based on paragraph 50A(2), (3) and (5) of Schedule 26 to FA 2002.
1667.“Carrying value” is defined in section 702.
1668.Subsection (3) makes an exception to the general rule in so far as a credit or debit arising from the change of accounting policy is brought into account for the purposes of this Part under another provision. For example, a prior period adjustment brought into account under section 597(2) would be excepted from the general rule in this section.