Policy paper

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).

• From: HM Revenue & Customs
• Published: 26 March 2015
• Last updated: 4 August 2015
  Show all updates

  1. 4 August 2015

     The Loan Relationships and Derivative Contracts (Change of Accounting Practice) (Amendment) Regulations 2015 have been made.

  2. 26 March 2015

     First published.

Documents

Corporation Tax: accounting for credit losses

PDF, 95.5 KB, 3 pages

Details

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.