IRO Acquiring of asset Financing of exp. Disposal of asset Supply of service FOR FEC / FCOC on TRANSLATION date, use rate on TRANSACTION DATE Thus: no difference on translation date Take into account on realisation NOTE: Where FEC entered into to hedge debt = the CTR and DEBT constitute TWO SEPARATE EXCHANGE ITEMS (THEREFORE: Calculate exchange differences in relation to both items at the translation and realisation dates) SILKE 22.5 DEFERRAL OF ECHANGE GAIN / LOSS {s24l(7)} Loan / advance / debt utilised iro Acquisition, installation, erection / construction of any MACHINERY, PLANT, IMPLEMENT, UTENSIL, BUILDING OR IMPROVEMENT TO BUILDING OR Devising, developing, creation, production, acquisition, restoration of any INVENTION, PATENT, DESIGN, TM, ©, or similar property/knowledge ito s11(gA) & (gB) Exchange loss or gain DEFERRED UNTIL YOA in which asset is BROUGHT INTO USE for the purpose of person’s trade (or commissioner satisfied that the loan will no longer be incurred / utilised as contemplated OR asset will not be brought into use for trade purpose) SILKE EG 22.7
IRO Acquiring of asset Financing of exp. Disposal of asset Supply of service FOR FEC / FCOC on TRANSLATION date, use rate on TRANSACTION DATE Thus: no difference on translation date Take into account on realisation NOTE: Where FEC entered into to hedge debt = the CTR and DEBT constitute TWO SEPARATE EXCHANGE ITEMS (THEREFORE: Calculate exchange differences in relation to both items at the translation and realisation dates) SILKE 22.5 DEFERRAL OF ECHANGE GAIN / LOSS {s24l(7)} Loan / advance / debt utilised iro Acquisition, installation, erection / construction of any MACHINERY, PLANT, IMPLEMENT, UTENSIL, BUILDING OR IMPROVEMENT TO BUILDING OR Devising, developing, creation, production, acquisition, restoration of any INVENTION, PATENT, DESIGN, TM, ©, or similar property/knowledge ito s11(gA) & (gB) Exchange loss or gain DEFERRED UNTIL YOA in which asset is BROUGHT INTO USE for the purpose of person’s trade (or commissioner satisfied that the loan will no longer be incurred / utilised as contemplated OR asset will not be brought into use for trade purpose) SILKE EG 22.7