»Ê¹ÚÌåÓýapp

Computing credits and debits

This guidance applies to periods of account beginning before 1 January 2005

A company’s profits and losses on derivative contracts are brought into account in almost exactly the same way as its profits and losses on loan relationships.

FA02/SCH26/PARA15 follows the provisions of FA96/S84 with certain modifications. Unlike Section 84, no mention is made of interest and the description of related transactions is slightly different.

»Ê¹ÚÌåÓýapp amounts to be brought into the corporation tax computation, termed ‘creditsâ€� and ‘debitsâ€� following the loan relationships usage, will

• be brought into account using an authorised accounting method (CFM84010), and
• fairly represent all profits, gains and losses, both capital and revenue, and charges and expenses

relating to the company’s derivative contracts and related transactions.