Inclusion of financial instruments at fair value
(1) Subject to subparagraphs (2) to (4) of this paragraph, financial instruments, including derivative financial instruments, may be accounted for by companies at fair value.
(2) Subparagraph (1) of this paragraph and paragraph 22AA does not apply to financial instruments which constitute liabilities unless -
(a) they are held as part of a trading portfolio, or
(b) they are derivative financial instruments.
(3) Subparagraph (1) of this paragraph does not apply to -
(a) non-derivative financial instruments held to maturity,
(b) loans and receivables originated by the company and not held for trading purposes,
(c) interests in subsidiary undertakings, associated undertakings and joint ventures,
(d) equity instruments issued by the company,
(e) contracts for contingent consideration in a business combination, and
(f) other financial instruments with such special characteristics that the instruments, according to what is generally