Foreign exchange: accounts drawn up in a foreign currency: designated currency election: newly incorporated companies
Newly incorporated company
Where a newly incorporated investment company cannot meet conditions A and B (CFM64520) at the date of incorporation, it can still make a valid designated currency election at any time from the date of incorporation to the day before its first accounting period begins, provided that on the first day of its accounting period it meets one of the two conditions (A or B). The election will be valid from the date that the investment company is incorporated.
If a newly incorporated company makes an election but on the first day of its accounting period it does not meet either condition A or B, the election will be void.