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HMRC internal manual

Corporate Finance Manual

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HM Revenue & Customs
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Accounts drawn up in a foreign currency: FA 2009: overview

Overview

This guidance applies to accounting periods beginning on or after 29 December 2007

FA 2009 contained amendments to FA 1993, the main impact being that losses originally computed in a currency other than sterling are, in effect, to be carried forward or back in the currency in which those losses originated.

This is a major change to the post-2005 regime during which losses were carried forward or back in sterling.

The FA 2009 changes also contained changes that provided:

  • clearer rules on the exchange rate applied to currency translations;
  • special rules where the currency in which the company computes its profits or losses changes and there are losses carried forward or back to be offset against profits computed in a different currency.