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).