CFM61110 - Foreign exchange: tax rules on exchange gains and losses: loan relationships and derivative contracts: non-monetary assets
Exchange gains and losses on non-monetary assets are not recognised at each accounting date
Only monetary assets and liabilities are translated at each accounting date. Companies translate non-monetary assets and liabilities, such as plant and machinery, on the date of acquisition and do not retranslate them subsequently. »Ê¹ÚÌåÓýapp exceptions are investments in foreign subsidiaries. »Ê¹ÚÌåÓýapp foreign shareholding may be retranslated if it is matched by a foreign loan and the losses on one offset the gains on the other. »Ê¹ÚÌåÓýappre are special rules for exchange gains and losses where matching is used in the accounts. See CFM62000.