[CFM62210] CFM62210 – Foreign exchange: matching under SSAP 20: overview
Matching under SSAP 20
The tax treatment of foreign exchange transactions has undergone a number of changes in recent years and CFM62220 contains an overview of these.
Guidance on the current legislation is as follows:
•For companies continuing to account under SSAP 20 using net investment hedging, CTA09/S328(3) provides for exchange gains or losses on loan relationships, which are taken to reserves, to be disregarded – see CFM62230. There is similar provision for derivative contracts at CTA09/S606(3).