Part 7Derivative contracts
Chapter 4Further provision about credits and debits to be brought into account
Adjustments on change of accounting policy
613Introduction to sections 614 and 615
1
Sections 614 and 615 (adjustments on change of accounting policy) apply if—
a
there is a change of accounting policy in drawing up a company's accounts from one period of account to the next, and
b
the accounting policy in each of those periods accords with the law and practice applicable in relation to that period.
2
In this section and those sections—
a
the first of those periods of account is referred to as “the earlier period”, and
b
the next is referred to as “the later period”.
3
Sections 614 and 615 apply, in particular, if—
a
the company prepares accounts for the earlier period in accordance with UK generally accepted accounting practice and for the later period in accordance with international accounting standards, or
b
the company prepares accounts for the earlier period in accordance with international accounting standards and for the later period in accordance with UK generally accepted accounting practice.
4
If an election is made under section 416, this section and sections 614 and 615 apply as if there were a change of accounting policy consisting of the company treating the assets referred to in section 416(1)(c) as mentioned in section 585(1) as from the date the election has effect.