Finance Act 2009

Foreign currency accountingE+W+S+N.I.

14(1)Subject to the following provisions of this paragraph, references in this Part to an amount disclosed in a balance sheet of a relevant group company, or of the worldwide group, as at any date are, where the amount is expressed in a currency other than sterling, to that amount translated into its sterling equivalent, translated by reference to the spot rate of exchange for that date.E+W+S+N.I.

(2)Sub-paragraph (3) applies in relation to a period of account of the worldwide group if all the amounts disclosed in balance sheets (whether of relevant group companies, or of the worldwide group) that are relevant to a calculation under this Part in relation to that period are expressed in the same currency (“the relevant foreign currency”) and that currency is not sterling.

(3)Where this sub-paragraph applies—

(a)references in this Schedule to an amount disclosed in a balance sheet of a relevant group company, or of the worldwide group, are to that amount expressed in the relevant foreign currency, and

(b)for the purposes of determining under paragraph 3 the net debt amount of a company, the reference in sub-paragraph (3) of that paragraph to £3 million is to be read as a reference to the relevant amount.

(4)For this purpose “the relevant amount” means the average of—

(a)£3 million expressed in the relevant foreign currency, translated by reference to the spot rate of exchange for the company's start date, and

(b)£3 million expressed in the relevant foreign currency, translated by reference to the spot rate of exchange for the company's end date.