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HMRC internal manual

Corporate Finance Manual

HM Revenue & Customs
, see all updates

Accounts drawn up in a foreign currency: FA 2009: 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.