Section 617 | Election for section 616 not to apply

(1)A company may elect that section 616 is not to apply in relation to its contracts.

(2)But such an election does not apply to a contract if—

(a)the contract is a contract of long-term insurance, or

(b)the underlying subject matter of the embedded derivative is, or includes, commodities.

(3)An election under this section—

(a)must be made before the end of the first applicable accounting period of the company, and

(b)is irrevocable.

(4)In subsection (3) “the first applicable accounting period” means the first accounting period in which the conditions in section 616(1) are met.

(5)Section 618 makes further provision about elections under this section.