22(1)Paragraph 6 (bad debts etc where parties have a connection) is amended as follows.U.K.
(2)In the heading for “Bad debt etc” substitute “ Impairment losses ”.
(3)In sub-paragraph (1) for “requires an authorised accruals basis of accounting to be used” substitute “ (accounting method where parties have a connection) applies ”.
(4)In sub-paragraph (2) omit “in accordance with that accounting method”.
(5)For sub-paragraph (3) substitute—
“(3)An impairment loss may be brought into account for the purposes of this Chapter only in accordance with—
(a)sub-paragraph (4) below,
(b)paragraph 6A, or
(c)paragraph 6B.”.
(6)After that sub-paragraph insert—
“(3A)Where an impairment loss is excluded by sub-paragraph (3), no credit in respect of any reversal of the impairment shall be brought into account for the purposes of this Chapter.”.
(7)In sub-paragraph (4) for “A departure from that assumption shall be allowed” substitute “ An impairment loss is not excluded by sub-paragraph (3) ”.