CTA09/S600-603

Circumstances in which fair value accounting must be used

There are two main scenarios in which credits or debits must be determined for tax purposes on the basis of fair value accounting, regardless of the actual accounting method adopted by the company.

Fair value accounting is defined at CTA09/S710. Following amendments made by F(2)A15, for company periods of account beginning on or after 1 January 2016, it is defined as a basis of accounting under which-

assets and liabilities are measured in the company's balance sheet at their fair value, and

changes in the fair value of assets and liabilities are recognised as items of profit or loss.

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