SCHEDULES

SCHEDULE 9 Loan relationships: special computational provisions

F1Adjustment on change of accounting policy

Annotations:
Amendments (Textual)
F1

Sch. 9 paras 19A, 19B and cross-heading inserted (with effect in accordance with s. 52(3) of the amending Act) by Finance Act 2004 (c. 12), Sch. 10 para. 36

19A

1

This paragraph applies where—

a

there is a change of accounting policy in drawing up a company’s accounts from one period of account (the “earlier period”) to the next (the “later period”), and

b

the approach in each of those periods accorded with the law and practice applicable in relation to that period.

2

This paragraph applies, in particular, where—

a

the company prepares accounts for the earlier period in accordance with UK generally accepted accounting practice and for the later period in accordance with international accounting standards, or

b

the company prepares accounts for the earlier period in accordance with international accounting standards and for the later period in accordance with UK generally accepted accounting practice.

3

If there is a difference between—

a

the accounting value of an asset or liability representing a loan relationship of the company 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) shall be brought into account for the purposes of this Chapter in the later period.

4

In sub-paragraph (3) “accounting value” means the carrying value of the asset or liability recognised for accounting purposes.

5

This paragraph does not apply if or to the extent that such a debit or credit as is mentioned in sub-paragraph (3) falls to be brought into account apart from this paragraph.

6

Where or to the extent that an adjustment is made under this paragraph, no adjustment under Schedule 22 (computation of profits: adjustment on change of basis) shall be made.