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HMRC internal manual

Corporate Finance Manual

Derivative contracts: bringing amounts into account: disregarding credits and debits

Secondary legislation

CTA09/S598 gives the Treasury power to modify these basic rules by regulations in specified cases. Regulations may prescribe that certain amounts included in a company’s accounts are disregarded, or that amounts which are not shown in a company’s accounts are brought into account.

The main regulations that have been made under this power are SI 2004/3256, the so-called Disregard Regulations. These regulations deal predominantly with hedging under IAS. Detailed guidance is at CFM57000 onwards, or in relation to hedges of net investment in a foreign operation - ‘forex matching’ - at CFM62000 onwards.