76B Treatment of unrealised gains and losses in certain cases.

(1) (a) In this section and paragraph 4 of Schedule 17A, “fair value”, “financial asset” and “financial liability” have the meanings assigned to them by international accounting standards.

(b) For the purposes of this section, section 76A and paragraph 4 of Schedule 17A—

(i) references to profits or gains include references to losses, and

(ii) the amount of a loss incurred in a trade or profession in an accounting period shall be computed in like manner as profits or gains from the trade or profession in the accounting period would have been computed.

(2) A profit or gain from a financial asset or a financial liability of a company that, in accordance with relevant accounting standards (within the meaning of Schedule 17A) is—

(a) calculated on the basis of fair values of the asset or the liability in an accounting period, and

(b) included in the profit or loss of the company for the accounting period,

shall be taken into account on that basis in computing profits or gains of the company for that accounting period for the purposes of Case I or II of Schedule D.