Section 599B | Determination of credits and debits where amounts not fully recognised ^F1

(1)In determining the credits and debits which a company is to bring into account for the period referred to in section 599A(1) for the purposes of this Part in respect of the derivative contract mentioned in section 599A(2), the assumption in subsection (2) is to be made.^F1

(2)The assumption is that an amount in respect of the whole of the contract in question is recognised in determining the company's profit or loss for the period.^F1

(2A)But no debits are, as a result of this section, to be brought into account by the company in respect of the derivative contract.^F1F2

(3)The credits and debits which are to be brought into account for the purposes of this Part by the company in respect of the contract are to be determined on the basis of fair value accounting.^F1

(4)If—^F3

(a)the company is, or is treated as, a party to the contract at the beginning of the period referred to in section 599A(1), and^F3

(b)the fair value of the contract at that time is greater than the tax-adjusted carrying value of that contract at that time,^F3F4

a credit of an amount equal to the difference is to be brought into account for that period for the purposes of this Part in respect of the contract.