(1) Chapter 1B of Part 27 of the Principal Act is amended -

(a) in section 739K(1) -

(i) by inserting the following definitions:

"'balance sheet' means the balance sheet, statement of financial position or equivalent prepared in respect of an investment undertaking or sub-fund, as the case may be, in accordance with international accounting standards or alternatively in accordance with the generally accepted accounting practice specified in the investment undertaking's prospectus;

'market value' shall be construed in accordance with section 548;

'value of an IREF taxable event' in relation to an IREF taxable event within the meaning of -

(a) paragraph (a) of the definition of 'IREF taxable event', means the value of the relevant payment,

(b) paragraphs (b), (c), (d), (e) and (f) of the definition of 'IREF taxable event', means the market value of the unit less any amount subscribed for that unit, and

(c) paragraph (g) of the definition of 'IREF taxable event', means the amount of the accrued IREF profits sold or transferred;",

(ii) in the definition of "IREF assets", in paragraph (d), by inserting "(within the meaning of section 110(5A))" after "specified mortgages", and

(iii) in the definition of "IREF excluded profits", by substituting the following paragraph for paragraph (c):