CRA indicates that accrued interest under both ss. 20(14)(a) and (b) is translated at the transfer date spot rate

CRA indicated that where an FX-denominated debt is assigned between interest coupon dates, the amount of the accrued interest translated at the spot rate on the transfer date is what is used both in determining the transferor’s income inclusion under s. 20(14)(a), and the transferee’s deduction under s. 20(14)(b).

Neal Armstrong. Summary of 27 November 2018 CTF Roundtable, Q.14 under s. 261(2)(b).