(1) The Principal Act is amended by inserting the following after section 79A:

"79B.

(1)

(a) In this section -

'foreign currency asset', in relation to a company, means an asset of the company -

(i) the consideration for the acquisition of which consisted solely of an amount denominated in a currency other than the currency of the State, and

(ii) any gain on the disposal of which would be taken into account in computing income of the company chargeable to tax under Case I of Schedule D;

'relevant foreign currency liability', in relation to a company, means a liability, not being a relevant monetary item (within the meaning of section 79) which arises from a sum subscribed for paid-up redeemable share capital of the company which is denominated in a currency other than the currency of the State;

'rate of exchange' has the meaning assigned to it by section 79.

(b) For the purposes of this section -

(i) where at any time a company disposes of a foreign currency asset which has been matched with a corresponding relevant foreign currency liability and the company does not discharge the liability at that time, the company shall be deemed to discharge the liability, and to incur a new liability equal to the amount of the liability, at that time,