CFM9300 - Taxing forex: SSAP 20 matching: contents

Contents

Companies that have adopted IAS 39 and IAS 21 (or FRS 26 and FRS 23) can no longer account in the way described at CFM9310 for liabilities or currency contracts that hedge assets. But, where the company intends one or more liabilities or derivatives to function as a hedge of shares (or ships or aircraft), the Disregard Regulations (SI 2004/3256) allow a similar tax treatment to continue. This applies to periods beginning on or after 1 January 2005, and is covered at CFM9400 onwards. This section of the guidance applies to company that, in their accounts, use the “cover method” under SSAP 20, whether the accounting period in question begins before or after 1 January 2005.