Versions of s. 261(6)(a)(ii)

the taxpayer is deemed to have a capital loss under paragraph 39(2)(b) or a loss, as the case may be, attributable to the fluctuation in the values of currencies in respect of the particular payment for the particular functional currency year equal to the amount determined by the formula F × G/H where F is the amount determined by the formula I × J where I is the amount (expressed in Canadian currency), if any, that would have been determined to be the taxpayer’s capital loss under paragraph 39(2)(b) or loss, as the case may be, if the principal amount of the debt obligation outstanding (determined in Canadian currency), immediately before the end of the last Canadian currency year of the taxpayer, had been settled by a payment by the taxpayer to the holder of the obligation of an amount equal to that outstanding principal amount at that time, and J is the transitional exchange rate of the taxpayer, G is the amount of the particular payment (expressed in the taxpayer’s functional currency for the particular functional currency year), and H is the principal amount of the debt obligation outstanding (determined in the taxpayer’s functional currency for the particular functional currency year) at the beginning of the initial functional currency year of the taxpayer, and