(1)This section applies if generally accepted accounting practice allows a credit or debit for an accounting period in respect of a company’s derivative contract to be treated in the company’s accounts as an amount recognised in determining the value of a fixed capital asset or project.
(2)Despite that treatment, the credit or debit must be brought into account in accordance with this Part, in the accounting period for which it is given, in the same way as a credit or debit which is recognised in determining the company’s profit or loss for that period in accordance with generally accepted accounting practice.
(3)But subsection (2) does not apply to a debit which is recognised in arriving at the amount of expenditure in relation to which a debit may be given by Part 8 (intangible fixed assets).
(4)Subsection (5) applies if a debit is recognised as mentioned in subsection (1).
(5)No debit may be brought into account in accordance with this Part in respect of—
(a)the writing down of so much of the value of the asset or project, or
(b)so much of any amortisation or depreciation as represents a writing off of that value,
as is attributable to that debit.
(1)This section applies if in accordance with generally accepted accounting practice a credit or debit for a period in respect of a company’s derivative contract—
(a)is recognised in equity or shareholders' funds, and
(b)is not recognised in any of the statements mentioned in section 597(1) (amounts recognised in determining a company’s profit or loss).
(2)The credit or debit must be brought into account for the period in accordance with this Part in the same way as a credit or debit which is recognised in determining the company’s profit or loss for the period in accordance with generally accepted accounting practice.