Part 7

Derivative contracts
Chapter 3

Credits and debits to be brought into account: general

Miscellaneous

Pre-contract or abortive expenses
607
1
This section applies if—
a
a company may enter into a derivative contract or related transaction but has not yet done so,
b
it incurs any expenses for purposes connected—
i
with entering into it, or
ii
with giving effect to any obligation which might arise under it, and
c
had the company entered into the contract or transaction, the expenses would be expenses within section 595(3)(b).
2
The expenses are treated as expenses in relation to which debits may be brought into account in accordance with section 595(3) to the same extent as if the company had entered into the contract or transaction.