CFM16500 - Transition to IAS:
overview
Overview
This guidance describes the treatment of loan relationships
and derivative contracts in accounting periods beginning on or
after 1 January 2005.
This section of the Corporate Finance Manual explains the
transitional adjustments that arise for tax purposes in relation to
loan relationships and derivative contracts where a company adopts
International Accounting Standards (IAS) or moves to Financial
Reporting Standards (FRS) 25 and 26 in a period of account
beginning on or after 1 January 2005.
The relevant legislation is at FA96/S85B and FA96/SCH9
paragraph 19A (for loan relationships) and FA02/SCH26 paragraph 17B
and paragraph 50A (for derivative contracts). This legislation
ensures that adjustments arising on a transition to IAS are brought
in for tax purposes.
Certain of these transitional debits and credits are then
deferred, or may be excluded from the charge to tax. These rules
are set out in the Loan Relationships and Derivative Contracts
(Change of Accounting Practice) Regulations 2004. These regulations
apply for both loan relationships and derivative contracts.
| CFM16505 | Transition to IAS: accounting treatment |
| CFM16510 | Transition to IAS: cases where there is a prior period adjustment |
| CFM16515 | Transition to IAS: cases where there is no prior period adjustment |
| CFM16520 | Transition to IAS: cases where there is no prior period adjustment: meaning of ‘carrying value’ |
| CFM16525 | Transition to IAS: cases where there is no prior period adjustment: ‘post-cessation’ gains and losses |
| CFM16530 | Transition to IAS: the Change of Accounting Practice Regulations: introduction |
| CFM16535 | Transition to IAS: the Change of Accounting Practice Regulations: ‘prescribed’ debits and credits |
| CFM16540 | Transition to IAS: the Change of Accounting Practice Regulations: debits and credits that are not ‘prescribed’ |
| CFM16545 | Transition to IAS: the Change of Accounting Practice Regulations: amounts deferred |
| CFM16550 | Transition to IAS: the Change of Accounting Practice Regulations: amounts not brought into account |
| CFM16555 | Transition to IAS: artificial losses: forestalling provisions |
