SCHEDULES
SCHEDULE 8FORM AND CONTENT OF ACCOUNTS PREPARED BY SMALL COMPANIES
PART IIACCOUNTING PRINCIPLES AND RULES
SECTION DFAIR VALUE ACCOUNTING
Inclusion of financial instruments at fair value
34A
1
Subject to sub‐paragraphs (2) to (4), financial instruments (including derivatives) may be included at fair value.
2
Sub‐paragraph (1) does not apply to financial instruments which constitute liabilities unless—
a
they are held as part of a trading portfolio, or
b
they are derivatives.
3
Sub‐paragraph (1) does not apply to—
a
financial instruments (other than derivatives) held to maturity;
b
loans and receivables originated by the company and not held for trading purposes;
c
interests in subsidiary undertakings, associated undertakings and joint ventures;
d
equity instruments issued by the company;
e
contracts for contingent consideration in a business combination;
f
other financial instruments with such special characteristics that the instruments, according to generally accepted accounting principles or practice, should be accounted for differently from other financial instruments.
4
If the fair value of a financial instrument cannot be determined reliably in accordance with paragraph 34B, sub‐paragraph (1) does not apply to that financial instrument.
5
In this paragraph—
“associated undertaking” has the meaning given by paragraph 20 of Schedule 4A; and
“joint venture” has the meaning given by paragraph 19 of that Schedule.