Valid from 07/04/2005
26(1)Section 85B of FA 1996 (loan relationships: amounts recognised in determining company's profit or loss) is amended as follows.U.K.
(2)In subsection (1)(a) after “profit and loss account” insert “ or income statement ”.
(3)For subsection (2) substitute—
“(2)An amount that in accordance with generally accepted accounting practice is shown as a prior period adjustment in any such statement as is mentioned in subsection (1) shall be brought into account for the purposes of this Chapter in computing the company's profits and losses for the period to which the statement relates.
This does not apply to an amount recognised for accounting purposes by way of correction of a fundamental error.”.
(4)In subsection (3)—
(a)in paragraph (a) after “subsection (1)” insert “ or (2) ”, and
(b)in paragraph (b) for “subsection (1)” substitute “ that subsection ”.
(5)In subsection (4) after “subsection (1)” insert “ or (2) ”.