David Boneham (Deloitte) summarises what the disregard regulations cover, and explains the aspects that companies need to consider when adopting new UK GAAP.
The Loan Relationships and Derivative
Contracts (Disregard and Bringing into Account of Profits and Losses) Regulations SI 2004/3256 (referred to throughout this article as ‘DR’) originated in response to increased use of fair value accounting – particularly for derivatives – with the advent in 2005 of IFRS and IFRS-aligned methods of accounting. In the event most UK companies will only ultimately migrate to an IFRS-aligned method of accounting with the mandatory adoption of new UK GAAP (principally FRS 101 and FRS 102 – with IFRS ‘the new accounting’) for periods of account beginning on or after 1...
