CFM1160 - Introduction to the Corporate Finance Manual: converting from the old Corporate Finance Manual
The old and the new Corporate Finance Manuals: origins and destinations
The CFM was first introduced in 2002. It has been rewritten as a consequence of the introduction of the Corporation Tax Act 2009 (CTA09), which was part of the Tax Law Rewrite (TLR) project. The rewritten legislation follows a different structure to the predecessor legislation but like other TLR legislation, it does not change the law. Most of the content of the CFM has not changed, but it has been substantially re-ordered to reflect the structure of CTA09. There is some new material, and some of the guidance relating to older versions of the legislation has been consolidated in the last chapter of the guidance (CFM80000).
Since then the CFM has been updated to reflect accountancy changes that were brought in by the introduction of New UK GAAP. These changes apply to all accounting periods starting on or after 1 January 2015. Moving forwards companies will be expected to use IAS21, FRS101 or FRS102, further detail is provided where relevant throughout the manual.
It is not practical to provide a page by page guide to show how the former guidance has been re-arranged in the new guidance. But the table below gives a general indication of the sources and destination of the guidance.
| Subject | Old CFM | New CFM |
|---|---|---|
| Understanding loan relationships | 3100 | CFM11000 |
| Accounting for loan relationships | 4000 | CFM20000 |
| Loan relationships: scope | 5050 | CFM31000 |
| Loan relationships: accounting methods (old) | 5100 | CFM80100 |
| Loan relationships: IAS accounting | 5144 | CFM21000 |
| Loan relationships: taxable amounts | 5200 | CFM33000 |
| Loan relationships: taxing and relieving provisions | 5300 | CFM32000 |
| Loan relationships: connected persons | 5400 | CFM35000 |
| Loan relationships: consortia | 5550 | CFM35600 |
| Loan relationships: connected persons and late interest | 5600 | CFM35800 |
| Loan relationships: connected persons and discounted securities | 5700 | CFM37200 |
| Loan relationships: groups | 5800 | CFM34000 |
| Loan relationships: partnerships | 5850 | CFM36000 |
| Loan relationships: asset-linked securities | 5900 | CFM82400 |
| Loan relationships: index-linked securities | 5940 | CFM37100 |
| Loan relationships: repos and stock lending | 6000 | CFM74100 |
| Loan relationships: alternative finance | 6050 | CFM44000 |
| Loan relationships: convertibles | 6100 | CFM37600 |
| Loan relationships: non-arm’s length transactions | 6200 | CFM38000 |
| Loan relationships: unallowable purposes | 6210 | CFM38100 |
| Loan relationships: reset bonds | 6250 | CFM39040 |
| Loan relationships: imported losses | 6300 | CFM33250 |
| Loan relationships: shares as debt | 6320 | CFM45000 |
| Loan relationships: money debts | 6400 | CFM41000 |
| Loan relationships: structured finance | 6750 | CFM73000 |
| Loan relationships: amounts not recognised by accounting practice | 6900 | CFM33120 |
| Understanding forex | 7002 | CFM12000 |
| Accounting for forex | 8000 | CFM26000 |
| Taxing forex | 9000 | CFM60000 |
| Understanding derivatives | 11005 | CFM13000 |
| Accounting for derivatives | 12000 | CFM24000 |
| Derivatives introduction | 13000 | CFM50020 |
| Derivatives: scope | 13050 | CFM50300 |
| Derivatives: accounting test | 13078 | CFM50200 |
| Derivatives: underlying subject matter | 13094 | CFM50500 |
| Derivatives: exclusions | 13130 | CFM50700 |
| Derivatives: pre 2004 rules | 13150 | CFM84000 |
| Derivatives: post 2004 rules | 13250 | CFM51000 |
| Derivatives: hedging and ‘disregard’ regulations | 13270 | CFM57000 |
| Derivatives: bringing amounts into account | 13500 | CFM51000 |
| Derivatives: special types of contract | 13530 | CFM55000 |
| Derivatives: group transfers | 13630 | CFM53000 |
| Derivatives: anti-avoidance | 13660 | CFM56000 |
| Derivatives: transitional rules | 13700 | CFM80000 |
| Collectives | 14000 | CFM43000 |
| International accounting standards | 16000 | CFM21000 |
| Change of accounting practice regulations | 16500 | CFM76060 |
| Artificial payments of interest | 17005 | CFM39020 |
| Funding bonds | 17030 | CFM37400 |
| Stock loans | 17050 | CFM74100 |
| Manufactured payments | 17300 | CFM74300 |
| Manufactured overseas dividends | 17360 | CFM74360 |
| Repos | 17500 | CFM46100 |
| Securitisation | 20000 | CFM72000 |