(a) the total of all amounts each of which is the carrying value at the end of the year of an asset of the financial institution (other than property held by the institution primarily for the purpose of resale that was acquired by the financial institution, in the year or the preceding taxation year, as a consequence of another person’s default, or anticipated default, in respect of a debt owed to the institution) that is tangible, or for civil law corporeal, property used in Canada and, in the case of a financial institution that is an insurance corporation, that is non-segregated property, within the meaning assigned by subsection 138( ...[+++]12),

(i) flows of transactions (tangible and intangible assets, services, financial);

Fair value accounting will therefore not be permitted for balance sheet items such as fixed assets (for example land and buildings or plant and equipment). Similarly, certain financial instruments, such as long-term debt, will continue to be stated at historical cost.

Moreover, natural assets over which ownership rights have not, or cannot, be established, such as open seas or air, are excluded.

The Member States may, however, require or permit differences produced by translation in accordance with paragraphs 1 and 2 to be included, in whole or in part, in reserves not available for distribution, where they arise on assets held as financial fixed assets, on tangible and intangible assets and on any transactions undertaken to cover those assets.

The Member States my, however, require or permit assets held as financial fixed assets and tangible and intangible assets, no covered or not specifically covered in either the spot or forward markets, to be translated at the rates ruling on the dates of their acquisition.