Tax reforms 'could deter corporate hedging'

The market has already widely denounced the move to fair-value accounting and the restrictions on hedge accounting that will be implemented in the IAS 39 standards on January 1, because of their potential to introduce more volatility into financial results. This latest proposal will add yet another obstacle, said the ACT, commenting on the HM Treasury and Inland Revenue's consultation on Corporation Tax Reform (August 2003) earlier this month.

"We are concerned that if taxation were also to

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