Amendments to the Loan Relationships and Derivative Contracts (Disregard and Bringing into Account of Profits and Losses) Regulations 20043
In regulation 2 (interpretation), in paragraph (1)—
a
omit the definition of “fair value accounting”,
b
for the definition of “fair value profit or loss” substitute—
“fair value profit or loss” means the profit or loss brought into account in relation to a derivative contract or an asset or liability representing a loan relationship where for the period in question—
- a
the derivative contract or asset or liability representing a loan relationship is measured at fair value, or
- b
the derivative contract or asset or liability representing a loan relationship is a hedged item in a designated fair value hedge and the carrying value of the hedged item is adjusted for changes in fair value attributable to the hedged risk;
c
in paragraph (2), in the list of terms that have the same meaning as for accounting purposes, after “foreign operation” insert “, fair value, items of other comprehensive income”.