Policy paper

Draft legislation: the Loan Relationships and Derivative Contracts (Change of Accounting Practice) (Amendment) Regulations 2015

Proposed changes for the transitional adjustments arising on adoption of International Financial Reporting Standard 9 (IFRS 9) for credit losses.

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At Autumn Statement 2014, the government announced a new measure following the publication of a new accounting standard (IFRS 9) in July 2014.

IFRS 9 is mandatory for affected companies for periods of account beginning on or after 1 January 2018, with early adoption permitted in certain circumstances. This will result in an increase of credit loss allowances in companies affected by the change.

This measure amends existing Corporation Tax regulations to deal with transitional adjustments arising on adoption of IFRS 9 in respect of credit losses. The impact of the measure will be that all transitional adjustments relating to this accounting change will be spread over 10 years. This will be achieved by amending the Change of Accounting Practice Regulations 2004 (SI 2004/3271).

A Tax Information and Impact Note for this measure has also been published.

The Regulations have now been made law.

Published 26 March 2015
Last updated 4 August 2015 + show all updates
  1. The Loan Relationships and Derivative Contracts (Change of Accounting Practice) (Amendment) Regulations 2015 have been made.
  2. First published.