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Sterling functional or designated currency and non sterling presentation currency

Separate rules apply for UK resident investment companies. An investment company is defined as a company whose business consists wholly or mainly in the making of investments and the principal part of whose income is derived from those investments¹. These rules apply where, in accordance with GAAP, a UK resident investment company prepares its accounts for a period of account in a currency other than sterling and either:

1. Ìý

   •ÌýÌýÌýÌý it has sterling as its designated currency (see below) for that period of account; or

2. Ìý

   •ÌýÌýÌýÌý if it does not have a designated currency for that period, in its accounts for the period it identifies sterling as its functional currency in accordance with GAAP

In either case, the company must determine its profits or losses that fall to be computed in accordance with GAAP as if its accounts had been prepared in sterling².

The rules that are discussed at D4.202A in the case of UK resident trading companies