Cfm84210 - old rules: derivative contracts: basic rules pre fa 2004: reserves - hmrc internal manual
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CFM84210 - OLD RULES: DERIVATIVE CONTRACTS: BASIC RULES PRE FA 2004: RESERVES AMOUNTS TAKEN TO RESERVES This guidance applies to periods of account beginning before 1 January 2005 As
indicated by the example in CFM84200, in some circumstances it is generally accepted accounting practice to carry the profits or losses to reserves, rather than the profit and loss account.
In such cases, FA02/SCH26/PARA15(3)(a) ensures that, despite this accountancy treatment, profits, gains or losses on derivative contracts taken to reserves are brought into account for tax
purposes, except for amounts that must be transferred to the share premium account (FA02/SCH26/PARA15(2)). The treatment of exchange gains and losses taken to reserves is different
(FA02/SCH26/PARA16 - CFM62210 onwards). Previous page Next page Print this page