This section applies if generally accepted accounting practice allows a credit or debit for an accounting period in respect of a company's loan relationship to be treated in the company's accounts as an amount brought into account in determining the value of a fixed capital asset or project.

Despite that treatment, the credit or debit is to be brought into account for the purposes of this Part, for the accounting period in which it is given, in the same way as a credit or debit which is brought into account in determining the company's profit or loss for that period in accordance with generally accepted accounting practice.

But subsection (2) does not apply to a debit which is taken into account in arriving at the amount of expenditure in relation to which a debit may be given by Part 8 (intangible fixed assets).

Subsections (5) and (6) apply if a debit is brought into account as mentioned in subsection (2).

No debit may be brought into account in respect of the writing down of so much of the value of the asset or project as is attributable to that debit.

No debit may be brought into account in respect of so much of any amortisation or depreciation as represents a writing off of the interest component of the asset.