Section 1217BA — Corporation Tax Act 2009: Calculation of profits or losses of separate video game trade

Calculation of profits or losses of separate video game trade 1217BA 1 This section applies for the purpose of calculating the profits or losses of the separate video game trade.

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

a as a debit, the costs of the video game incurred (and represented in work done) to date, and b as a credit, the proportion of the estimated total income from the video game 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 video game 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 video game 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 video game, and I is the estimated total income from the video game.