The Loan Relationships and Derivative Contracts (Change of Accounting Practice) (Amendment) Regulations 2006

• Citation: S.I. 2006/3238
• Sections: 6

Section 1 Citation and commencement

These Regulations may be cited as the Loan Relationships and Derivative Contracts (Change of Accounting Practice) (Amendment) Regulations 2006 and shall come into force on 27th December 2006.

Section 2 Amendment to the Loan Relationships and Derivative Contracts (Change of Accounting Practice) Regulations 2004

Amend the Loan Relationships and Derivative Contracts (Change of Accounting Practice) Regulations 2004 as follows.

Section 3 Amendment to the Loan Relationships and Derivative Contracts (Change of Accounting Practice) Regulations 2004

For regulation 3 substitute—

Prescribed debits and credits to be brought into account: general

(3) Subject to regulation 3C, the debits and credits prescribed in regulation 4 shall be brought into account in accordance with regulations 3A and 3B in an accounting period of the company beginning on or after 1st January 2006.

Section 4 Amendment to the Loan Relationships and Derivative Contracts (Change of Accounting Practice) Regulations 2004

In regulation 3B (prescribed debits and credits in relation to dormant accounts brought into account in the first accounting period beginning on or after 1st January 2007) , in the heading and in paragraph (1) for “2007” substitute “2008”.

Section 5 Amendment to the Loan Relationships and Derivative Contracts (Change of Accounting Practice) Regulations 2004

(1) Amend regulation 3C (prescribed debits and credits not brought into account) as follows.

(2) In paragraph (2)—

(a) after sub-paragraph (a) insert—

(aa) debits and credits in relation to a derivative contract to which a company is treated as party by section 94A(2)(b) of the Finance Act 1996 where section 93 of that Act (relationships linked to the value of chargeable assets) applied to the debtor relationship in relation to that contract at the end of the company’s period of account immediately preceding the first period of account to begin on or after 1st January 2005;

(b) in sub-paragraph (d) at the end omit “and”;

(c) in sub-paragraph (e) at the end insert “; and”;

(d) at the end add—

(f) debits and credits in relation to a loan relationship to which a company is treated as party by section 94A(2)(a) of the Finance Act 1996 where section 92A(4) of that Act (loan relationships with embedded derivatives) applied to the debtor relationship in relation to that relationship at the end of the company’s period of account immediately preceding the first period of account to begin on or after 1st January 2005.

Section 6 Amendment to the Loan Relationships and Derivative Contracts (Change of Accounting Practice) Regulations 2004

In regulation 4 (prescribed debits and credits), in paragraph (3), for the words following “date on which” substitute “the asset or liability falls to be fully discharged is within the same accounting period as that in which the debits or credits falling within this paragraph arise.”.