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Revamp for CT rules on loan relationships

21 September 2010
Issue: 4273 / Categories: News , Companies
Draft regulations in response to IFRS9

HMRC have published a discussion paper relating to draft regulations on the amendments to parts 5 and 7 of CTA 2009, to be made under s 465A and s 701A.

The proposals relate to changes in accounting standards on financial instruments arising from the introduction of International Financial Reporting Standard 9.

The proposed regulations consider the impact of changes in the classification and measurement of financial instruments, and make changes in the following areas:

  • the definition and application of a change of accounting policy;
  • the adjustments to be made on a change of accounting policy;
  • the rules on hybrid and compound instruments;
  • transitional adjustments under the Change of Accounting Practice Regulations;
  • other consequential changes.

Further draft regulations will be issued when the International Accounting Standards Board’s proposals for new standards on impairment, hedge accounting, derecognition and other changes to IAS 39 have become clearer.

Comments on the draft regulations are invited and should be sent by 15 October 2010 to Tony Sadler, Fiona Hay or Adeline Chan.

Issue Extract
Issue: 4273 / Categories: News , Companies
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