Introduction Overview Overview
45.This Chapter contains a basic rule about the currency in which companies calculate and express their income and chargeable gains (see section 5) followed by four special rules (sections 6 to 9) which apply in certain cases, and rules dealing with how to convert losses carried backwards or forwards. It is based on sections 92 to 92E of FA 1993.
46.References in this Chapter to a company’s “functional currency” are to the currency that is most commonly used in the general economic and business environment in which the company operates – so for a company operating primarily in the UK the “functional currency” is sterling.
47.Schedule 2 contains rules that cover circumstances where a company elects that changes made by FA 2009 should only apply to accounting periods beginning on or after the date on which FA 2009 received Royal Assent, instead of on or after 29 December 2007.