Part 16Income Tax Acts definitions etc

Chapter 1Definitions

C1997Meaning of “generally accepted accounting practice” and related expressions

1

In the Income Tax Acts “generally accepted accounting practice” means UK generally accepted accounting practice.

This is subject to subsection (3).

2

In the Income Tax Acts “UK generally accepted accounting practice”—

a

means generally accepted accounting practice in relation to accounts of UK companies (other than IAS accounts) that are intended to give a true and fair view, and

b

has the same meaning in relation to—

i

individuals,

ii

entities other than companies, and

iii

companies that are not UK companies,

as it has in relation to UK companies.

3

In relation to the affairs of a company or other entity that prepares IAS accounts, in the Income Tax Acts “generally accepted accounting practice” means generally accepted accounting practice in relation to IAS accounts.

4

In the Income Tax Acts “for accounting purposes” means for the purposes of accounts drawn up in accordance with generally accepted accounting practice.

5

In the Income Tax Acts “international accounting standards” has the same meaning as in the Corporation Tax Acts (see F1section 1127 of CTA 2010).

6

In this section—

  • IAS accounts” means accounts prepared in accordance with international accounting standards, and

  • UK companies” means companies incorporated or formed under the law of a part of the United Kingdom.