Part 2

Calculation of liability in respect of profits
Chapter 4

Currency

Translating amounts into other currencies

The equivalent in another currency of a sterling amount
10
1
Subsection (2) applies if, for the purposes of calculating the profits or losses of a company arising in an accounting period, section 7(3), 8(3) or 9(3) requires a sterling amount to be translated into its equivalent expressed in another currency.
2
The translation must be made by reference to—
a
the average exchange rate for the accounting period, or
b
the rate mentioned in subsection (3).
3
That rate is—
a
if the amount to be translated relates to a single transaction, an appropriate spot rate of exchange for the transaction, or
b
if the amount to be translated relates to more than one transaction, a rate of exchange derived on a just and reasonable basis from appropriate spot rates of exchange for those transactions.