“issuer”, in relation to any instrument –
(a) means any person who has incurred any interest or has any obligation to repay any amount in terms of such instrument; or
(b) at any particular time, means any person who, if any interest payable in terms of such instrument was due and payable at that time, would be liable to pay such interest;
“accrual period”, in relation to an instrument, means –
(a) where in terms of such instrument regular payments at intervals of equal length and not exceeding 12 months per interval are to be made throughout the term of such instrument, the period between such regular payments; or
(b) any period not exceeding 12 months elected by the holder or issuer, as the case may be,
which period shall be applied consistently throughout the term of such instrument;
“transaction date” means, in relation to –
(a) ……….
(b) a debt owing by a person, the date on which such debt was actually incurred;
(c) ……….
(d) a debt owing to a person, the date on which the amount payable in respect of such debt accrued to such person or the date on which such debt was acquired by such person in any other manner;
(e) a forward exchange contract, the date on which such contract was entered into;
(f) a foreign currency option contract, the date on which such contract was entered into or acquired; and
(g) an amount which constitutes a unit of currency, the date on which that amount was acquired;
(1) For the purposes of this section –
“acquisition rate” means the exchange rate in respect of an exchange item obtained by dividing the amount of the expenditure incurred for the acquisition of such exchange item by the foreign currency amount in respect of such exchange item;
“issue price”, in relation to an instrument, means the market value of the consideration given or received, as the case may be, for the issue of the instrument as determined on the date on which that instrument is issued;
“ruling exchange rate” means, in relation to an exchange item, where such exchange item is –
(a) a debt in a foreign currency on –
(i) transaction date, the spot rate on such date;
(ii) the date it is translated, the spot rate on such date; or
(iii) the date it is realised, the spot rate on such date:
Provided that where the rate prescribed in respect of a debt in terms of this definition is the spot rate on transaction date or the spot rate on the date on which such debt is realised, and any consideration paid or incurred or received or accrued in respect of the acquisition or disposal of such debt was determined by applying a rate other than such spot rate on transaction date or date realised, such spot rate shall be deemed to be the acquisition rate or disposal rate, as the case may be;
(b) a forward exchange contract on –
(i) transaction date, the forward rate in terms of such forward exchange contract;
(ii) the date it is translated, the market-related forward rate available for the remaining period of such forward exchange contract or in respect of a forward exchange contract which is an affected contract, the forward rate in terms of such forward exchange contract;
(iii) the date it is realised, the spot rate on such date; or
(c) a foreign currency option contract on –
(i) transaction date, a nil rate;
(ii) the date it is translated –
(aa) in relation to a foreign currency option contract which is not an affected contract, the rate obtained by dividing the market value of such foreign currency option contract on that date by the foreign currency amount as specified in such foreign currency option contract; or
(bb) in relation to a foreign currency option contract which is an affected contract, the rate obtained by dividing any amount included or deducted, as the case may be, in terms of subsection (3)(b) by the foreign currency amount, as specified in such affected contract;
(iii) the date it is realised, the rate obtained by dividing the market value of such foreign currency option contract on that date by the foreign currency amount as specified in such foreign currency option contract: Provided that where such foreign currency option contract is realised by the disposal thereof, the rate shall be obtained by dividing the amount received or accrued as a result of the disposal of such foreign currency option contract, by the foreign currency amount as specified in such foreign currency option contract:
(d) an amount which constitutes a unit of currency, on-
(i) transaction date, the spot rate on that date;
(ii) the date it is translated, the spot rate on that date; or
(iii) the date it is realised, the spot rate on that date:
: Provided that the Commissioner may, having regard to the particular circumstances of the case, prescribe an alternative rate to any of the aforementioned prescribed rates to be applied by a person in such particular circumstances, if such alternative rate is used for the purposes of financial reporting pursuant to IFRS;
[Proviso substituted by section 44 of Act 25 of 2015 effective on 8 January 2016]
24J. Incurral and accrual of interest
“issue”, in relation to an instrument, means the creation of the liability to pay or the right to receive an amount or amounts in terms of such instrument;
“realised” means, in relation to an exchange item, where such exchange item is –
(a) a debt in any foreign currency, when and to the extent to which payment is received or made in respect of such debt, or when and to the extent to which debt is settled or disposed of in any other manner;
(b) a forward exchange contract, when payment is received or made in respect of such forward exchange contract;
(c) a foreign currency option contract, when payment is received or made in respect of the right in terms of such foreign currency option contract having been exercised, or when such foreign currency option contract expires without such right having been exercised, or when such foreign currency option contract is disposed of; or
(d) an amount which constitutes a unit of currency, when that amount is disposed of;
“interest rate agreement” means an interest rate agreement as defined in section 24K;