(1)     For the purposes of this section, unless the context otherwise indicates –

 

“accrual amount”, in relation to an accrual period, means an amount determined in accordance with the following formula:

 

A = B x C

 

in which formula –

 

(a)     “A” represents the amount to be determined;

 

(b)     “B” represents the yield to maturity; and

 

(c)     “C” represents the adjusted initial amount:

 

Provided that –

 

(i)      where the commencement or end of any year of assessment falls within an accrual period, the amount so determined shall be apportioned on a day to day basis over the term of such accrual period in order to determine the relevant portion of such amount relating to that part of such accrual period falling within the year of assessment so commencing or ending, as the case may be;

 

(ii)     where an instrument is transferred on a date other than at the end of an accrual period, the amount so determined shall be apportioned on a day to day basis over the term of such accrual period in order to determine the relevant portion of such amount relating to the relevant transferor or transferee, as the case may be, in relation to such instrument; and

 

(iii)    the amount so determined shall be appropriately adjusted by taking into account amounts received or payments made other than at the end of an accrual period;