SCHEDULES

F1X1 SCHEDULE 8FORM AND CONTENT OF ACCOUNTS PREPARED BY SMALL COMPANIES

Annotations:
Editorial Information
X1

Sch. 8: the earliest available versions of Sch. 8 and its contents are those having effect on 16.11.1992

Amendments (Textual)
F1

Sch. 8 substituted (1.3.1997) by S.I. 1997/220, reg. 2(2), Sch. 1

PART II ACCOUNTING PRINCIPLES AND RULES

SECTION DFAIR VALUE ACCOUNTING

Accounting for changes in value

34E

1

This paragraph applies where a financial instrument is valued in accordance with paragraph 34A or 34C or an asset is valued in accordance with paragraph 34D.

2

Notwithstanding paragraph 12 of this Schedule, and subject to sub-paragraphs (3) and (4) below, a change in the value of the financial instrument or of the investment property or living animal or plant must be included in the profit and loss account.

3

Where–

a

the financial instrument accounted for is a hedging instrument under a hedge accounting system that allows some or all of the change in value not to be shown in the profit and loss account, or

b

the change in value relates to an exchange difference arising on a monetary item that forms part of a company’s net investment in a foreign entity,

the amount of the change in value must be credited to or (as the case may be) debited from a separate reserve (“the fair value reserve”).

4

Where the instrument accounted for–

a

is an available for sale financial asset, and

b

is not a derivative,

the change in value may be credited to or (as the case may be) debited from the fair value reserve.