Commentary on Sections Overview Chapter 3: Credits and debits to be brought into account: general Section 603: Associated transaction treated as derivative contract
1627.This section applies fair value accounting in determining the credits and debits to be brought into account by virtue of section 588 in respect of an “associated transaction” that is treated as a derivative contract because of that section. It is based on section 91B(5) of FA 1996.
1628.For the circumstances in which section 588 applies and for the meaning of “associated transaction”, see the commentary on that section.
1629.Subsection (1) provides that this section must be construed as if it were part of Chapter 7 in Part 6 (shares with guaranteed returns etc). That Chapter rewrites sections 91A to 91G of FA 1996.