Section 10 — Corporation Tax Act 2010: The equivalent in another currency of a sterling amount

The equivalent in another currency of a sterling amount 10 1 Subsection (2) applies if, for the purposes of calculating the profits or losses of a company arising in an accounting period, section 7(3), 8(3) or 9(3) requires a sterling amount to be translated into its equivalent expressed in another currency.

2 The translation must be made by reference to—

a the average exchange rate for the accounting period, or b the rate mentioned in subsection (3).

3 That rate is—

a if the amount to be translated relates to a single transaction, an appropriate spot rate of exchange for the transaction, or b if the amount to be translated relates to more than one transaction, a rate of exchange derived on a just and reasonable basis from appropriate spot rates of exchange for those transactions.