The Loan Relationships and Derivative Contracts (Change of Accounting Practice) (Amendment) Regulations 2008
These Regulations amend the Loan Relationships and Derivative Contracts (Change of Accounting Practice) Regulations 2004 (S.I. 2004/3271, as amended by S.I. 2005/3383, 2006/3238, 2007/950 and 2007/3432, “the principal Regulations”) which make provision for certain debits and credits not to be brought into account in the first accounting period of a company beginning on or after 1st January 2005, and for those debits and credits instead to be brought into account over a ten year period (beginning with the first period of account on or after 1st January 2006), or not to be brought into account for any period. These Regulations amend the principal Regulations to provide that debits and credits arising on a change of accounting policy which represent the reversal of foreign exchange gains or losses which were not taxed or relieved in earlier periods of account (as a result of the application of provisions matching those gains or losses to opposite gains or losses) are no longer to be brought into account.