8.—(1) Part VII (interpretation of Schedule) is amended as follows.
(2) After paragraph 76 (interpretation) insert –
“Financial instruments
76A. References to “derivatives” include commodity-based contracts that give either contracting party the right to settle in cash or in some other financial instrument, except when such contracts –
(a)were entered into for the purpose of, and continue to meet, the company’s expected purchase, sale or usage requirements,
(b)were designed for such purpose at their inception, and
(c)are expected to be settled by delivery of the commodity.
76B.—(1) The expressions listed in sub-paragraph (2) have the same meaning as they have in Council Directive 78/660/EEC on the annual accounts of certain types of companies, as amended(1).
(2) Those expressions are “available for sale financial asset”, “business combination”, “commodity-based contracts”, “derivative”, “equity instrument”, “exchange difference”, “fair value hedge accounting system”, “financial fixed asset”, “financial instrument”, “foreign entity”, “hedge accounting”, “hedge accounting system”, “hedged items”, “hedging instrument”, “held for trading purposes”, “held to maturity”, “monetary item”, “receivables”, “reliable market” and “trading portfolio”.”.
(3) After paragraph 81 insert –
“Investment property
81A. “Investment property” means land held to earn rent or for capital appreciation.”.
(4) In paragraph 88 (interpretation of references to provisions for liabilities or charges) –
(a)for “provisions for liabilities or charges” substitute “provisions for liabilities”, and
(b)for “or loss” substitute “the nature of which is clearly defined and”.
O.J. No. L222 of 14.8.1978, page 11, as amended in particular by Directive 2001/65/EEC (O.J. No. L238 of 27.10.2001, page 28)