PART 3REPORTING FUNDS AND THE TREATMENT OF PARTICIPANTS IN REPORTING FUNDS
CHAPTER 4THE PREPARATION OF ACCOUNTS
Accounts to be prepared in accordance with acceptable accounting policy59
A reporting fund must prepare accounts—
a
in accordance with international accounting standards, or
b
in accordance with the generally accepted accounting practice specified in the application.
Change in accounting policy60
1
This regulation applies if—
a
there is a change of accounting policy in drawing up a reporting fund's accounts from one period of account (in this Chapter called the “earlier period”) to the next (in this Chapter called the “later period”), and
b
the approach in each of those periods accords with the law and practice applicable in relation to that period.
2
If there is a difference between—
a
the accounting value of an asset or liability of the offshore fund at the end of the earlier period, and
b
the accounting value of that asset or liability at the beginning of the later period,
a corresponding debit or credit (as the case may be) must be brought into account for the purposes of these Regulations in the later period.
3
In paragraph (2) “accounting value” means the carrying value of the asset or liability recognised for accounting purposes.
Change in accounting practice to a generally accepted accounting practice61
1
This regulation applies if—
a
there is a change of accounting practice in drawing up a reporting fund's accounts from the earlier period to the later period, and
b
the fund prepares accounts for the later period in accordance with a generally accepted accounting practice.
2
If the accounts for the later period are not prepared in accordance with international accounting standards, the offshore fund must give notice to HMRC—
a
applying for approval of the generally accepted accounting practice, and
b
providing the statement mentioned in regulation 53(1)(d).
3
If the accounts for the later period are prepared in accordance with international accounting standards, the offshore fund must give notice to HMRC.
4
Within 28 days beginning with the day on which HMRC receive an application under paragraph (2), HMRC must give notice to the offshore fund—
a
accepting the application, or
b
rejecting the application.
5
If HMRC reject an application, the offshore fund may appeal.
6
The notice of appeal must be given to HMRC within a period of 42 days beginning with the day on which the notice rejecting the application is given.
7
On an appeal, the tribunal may uphold or quash the rejection of the application.