312Determination of credits and debits where amounts not fully recognisedU.K.
(1)In determining the credits and debits which a company is to bring into account for the period referred to in section 311(1) for the purposes of this Part in respect of—
(a)the creditor relationship mentioned in section 311(2), F1...
F1(b). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
the assumption in subsection (2) is to be made.
[F2(1A)Subsection (1B) applies in a case where—
(a)pursuant to the arrangements mentioned in section 311(2)(b), the company becomes, or is treated as becoming, a party to a debtor relationship, and
(b)an amount is (in accordance with generally accepted accounting practice) not fully recognised for any period in respect of the debtor relationship.]
(1B)In determining the debits and credits which a company is to bring into account for any period for the purposes of this Part in respect of the debtor relationship F3..., the assumption in subsection (2) is to be made.
(2)The assumption is that an amount in respect of the whole of the relationship in question is recognised in determining the company's profit or loss for the period.
(3)[F4But—
(a)no debits are, as a result of this section, to be brought into account by the company in respect of the creditor relationship mentioned in section 311(2), and
(b)]the amount of any debits to be brought into account by the company for a period as a result of this section applying in respect of its debtor relationships must not exceed the amount of any credits to be brought into account by it for the period as a result of this section applying in respect of its creditor relationships.
(4)Subsection (5) applies in any case where—
(a)apart from this section any credits or debits are brought into account for a period for the purposes of this Part by the company in respect of a loan relationship, and
(b)the relationship is a creditor relationship within [F5subsection (1)] or a debtor relationship within [F6subsection (1B)].
(5)The credits and debits which are to be so brought into account as a result of this section are to be determined on the same basis of accounting as that on which the credits or debits mentioned in subsection (4)(a) are determined.
(6)In any other case, the credits and debits which are to be so brought into account as a result of this section are to be determined on an amortised cost basis of accounting.
Textual Amendments
F1S. 312(1)(b) and preceding word omitted (27.7.2010) by virtue of Finance (No. 2) Act 2010 (c. 31), Sch. 5 para. 2(2)
F2S. 312(1A) substituted (19.7.2011) (with effect in accordance with Sch. 4 para. 13 of the amending Act) by Finance Act 2011 (c. 11), Sch. 4 para. 3(2)
F3Words in s. 312(1B) omitted (19.7.2011) (with effect in accordance with Sch. 4 para. 13 of the amending Act) by virtue of Finance Act 2011 (c. 11), Sch. 4 para. 3(3)
F4Words in s. 312(3) substituted (19.7.2011) (with effect in accordance with Sch. 4 para. 13 of the amending Act) by Finance Act 2011 (c. 11), Sch. 4 para. 3(4)
F5Words in s. 312(4)(b) substituted (27.7.2010) by Finance (No. 2) Act 2010 (c. 31), Sch. 5 para. 2(4)(a)
F6Words in s. 312(4)(b) substituted (27.7.2010) by Finance (No. 2) Act 2010 (c. 31), Sch. 5 para. 2(4)(b)