Cfm84200 - old rules: derivative contracts: basic rules pre fa 2004: change of accounting method example - hmrc internal manual
- Select a language for the TTS:
- UK English Female
- UK English Male
- US English Female
- US English Male
- Australian Female
- Australian Male
- Language selected: (auto detect) - EN
Play all audios:
CFM84200 - OLD RULES: DERIVATIVE CONTRACTS: BASIC RULES PRE FA 2004: CHANGE OF ACCOUNTING METHOD EXAMPLE CHANGE OF ACCOUNTING METHOD - EXAMPLE This guidance applies to periods of account
beginning before 1 January 2005 At 31 December 2005 Airgrant Ltd has forward cocoa contracts with a market value of £95,000. These contracts do not appear on the company’s balance sheet
because it has accounted for its derivative contracts on an accruals basis (see CFM84050). The company changes its accounting policies and accounts for the contracts on a MTM basis from 1
January 2006 onwards. The 2006 balance sheet will show an opening value for derivative contracts of £95,000 and a corresponding credit taken to retained reserves, probably as a prior year
adjustment. FA02/SCH26/PARA15(6) ensures this amount is brought into charge. Previous page Next page Print this page