Part 2Trading income
Chapter 17Adjustment income
Treatment of adjustment income and adjustment expense
233Treatment of adjustment expense
1
An adjustment expense is treated as an expense of the trade arising on the last day of the first period of account for which the new basis is adopted.
2
But this is subject to sections 235 (cases where adjustment not required until assets realised or written off) and 236 (change from realisation basis to mark to market).