1(1)This paragraph applies for the purposes of the application of this Chapter in relation to investment trusts and venture capital trusts.
(2)If the Treasury by order approve the use of an accounting method for the creditor relationships of investment trusts or venture capital trusts—
(a)that method, instead of any method for which section 85 of this Act provides, shall be used as respects the creditor relationships of the trusts for which it is approved; and
(b)this Chapter shall have effect (subject to the provisions of the order) as if the accounting method were, for the purposes for which it is approved, an authorised accruals basis of accounting.
(3)Where an approval is given under this paragraph, it must be an approval of one of the following—
(a)the use of an accruals basis of accounting appearing to the Treasury to be recognised by normal accounting practice for use in the case of investment trusts;
(b)the use, with such modifications as may be provided for in the order, of an accruals basis of accounting appearing to them to be so recognised; or
(c)the use, with such modifications as may be so provided for, of an accounting method which, apart from the order, would be an authorised accruals basis of accounting.
(4)An order under this paragraph may provide for any approval of the use (with or without modifications) of a basis of accounting recognised by normal accounting practice to have effect in relation to accounting periods beginning before the time as from which the use of that method is recognised and before the making of the order.