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EW 18: Market valuation method
or “Using market values to determine the worth of financial arrangements”
You could also call this:

“Choosing how to spread income from financial arrangements”

If you’re not required to use a method under section EW 15B, you have some choices for how to handle a financial arrangement. You can pick from these methods:

  1. The yield to maturity method
  2. An alternative method
  3. The straight-line method
  4. A market valuation method

You can choose any of these methods as long as you’re able to use it for your specific financial arrangement. It’s up to you to decide which one works best for your situation.

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Next up: EW 20: Determination method or alternative

or “Using an approved method or alternative when other methods aren't suitable”
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Part E Timing and quantifying rules
Financial arrangements rules

EW 19Choice among some spreading methods

  1. A person who is not required to use a method under section EW 15B and who may use the yield to maturity method or an alternative, the straight-line method, or a market valuation method for a financial arrangement may choose to use whichever of those methods the person can use for the arrangement.

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Notes
  • Section EW 19 heading: amended, on , by section 370(1) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
  • Section EW 19: amended, on , by section 370(2) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
  • Section EW 19 list of defined terms IFRS: inserted, on , by section 370(3) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).