Section 613 — Corporation Tax Act 2009: Introduction to sections 614 and 615

Introduction to sections 614 and 615 613 1 Sections 614 and 615 (adjustments on change of accounting basis) apply if—

a a company changes, from one period of account or accounting period to the next, the basis of accounting on which credits and debits relating to its derivative contracts or any of them are calculated for the purposes of this Part, b the change of basis—

i is made in order to comply with a provision made by or under this Part requiring those credits and debits to be determined on a particular basis of accounting, or ii results from a change of the company's accounting policy, c the change of basis is not made in order to comply with amending legislation not applicable to the previous period, d the old basis accorded with the law or practice applicable in relation to the period before the change, and e the new basis accords with the law and practice applicable to the period after the change.

2 In this section and those sections—

a the first of the periods mentioned in subsection (1) is referred to as “ the earlier period ”, and b the next is referred to as “ the later period ”. 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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.