SSAP20: ‘Foreign currency translations’ is the accounting standard that deals with exchange translation adjustments.
For companies foreign exchange gains and losses are dealt with by the FOREX legislation in FA93 and subsequent legislation. Guidance on the rules introduced by FA02 is at CFM7000 onwards. Guidance on the previous rules is at CTM70000 onwards.
The tax treatment will often follow the accounting treatment. It
will not follow the accounting treatment if the underlying asset is
a capital asset of the business, unless the Marine Midland approach
is followed (
A full description of the treatment of foreign exchange gains and losses is in SP2/02 and BIM39500 onwards.