Section 1189 — Corporation Tax Act 2009: Calculation of profits or losses of separate film trade

Calculation of profits or losses of separate film trade 1189 1 This section applies for the purpose of calculating the profits or losses of the separate film trade.

2 For the first period of account the following are brought into account—

a as a debit, the costs of the film incurred (and represented in work done) to date, and b as a credit, the proportion of the estimated total income from the film treated as earned at the end of that period.

3 For subsequent periods of account the following are brought into account—

a as a debit, the difference between the amount of the costs of the film incurred (and represented in work done) to date and the corresponding amount for the previous period, and b as a credit, the difference between the proportion of the estimated total income from the film treated as earned at the end of that period and the corresponding amount for the previous period.

4 The proportion of the estimated total income treated as earned at the end of a period of account is given by— C T × I where— C is the total to date of costs incurred (and represented in work done), T is the estimated total cost of the film, and I is the estimated total income from the film.