Corporation Tax: accounting for credit losses
This Tax Information and Impact Note is about the tax treatment of credit losses and amends the Change of Accounting Practice Regulations 2004 (SI 2004/3271).
The accounting standard covering financial instruments is changing with the introduction of International Financial Reporting Standard 9 (IFRS 9). This measure amends the Change of Accounting Practice Regulations 2004 (SI 2004/3271) so that all transitional adjustments arising on first adoption of IFRS 9 for credit losses will be spread over 10 years.
The measure will have effect for periods of account commencing on or after 1 January 2015.
Draft legislation for this measure has also been published.
The Regulations have now been made law.
Published: 26 March 2015
Updated: 4 August 2015
- The Loan Relationships and Derivative Contracts (Change of Accounting Practice) (Amendment) Regulations 2015 have been made.
- First published.