Section 1127 — Corporation Tax Act 2010: “Generally accepted accounting practice” and related expressions

“Generally accepted accounting practice” and related expressions 1127 1 In the Corporation Tax Acts “ generally accepted accounting practice ” means UK generally accepted accounting practice. This is subject to subsection (3).

2 In the Corporation Tax Acts “UK generally accepted accounting practice”—

a means generally accepted accounting practice in relation to accounts of UK companies (other than IAS accounts) that are intended to give a true and fair view, and b has the same meaning in relation to—

i individuals, ii entities other than companies, and iii companies that are not UK companies, as it has in relation to UK companies.

3 In relation to the affairs of a company or other entity that prepares IAS accounts, in the Corporation Tax Acts “ generally accepted accounting practice ” means generally accepted accounting practice in relation to IAS accounts.

4 In the Corporation Tax Acts “ for accounting purposes ” means for the purposes of accounts drawn up in accordance with generally accepted accounting practice.

5 In the Corporation Tax Acts “ international accounting standards ” has the same meaning as in Regulation (EC) No 1606/2002 of the European Parliament and the Council of 19 July 2002 on the application of international accounting standards.

6 If an international accounting standard has been adopted by the United Kingdom or the European Commission with modifications, then as regards matters covered by that standard—

a generally accepted accounting practice with respect to IAS accounts is to be regarded as permitting the use of the standard either with or without modifications, and b accounts prepared on either basis are to be regarded for the purposes of the Corporation Tax Acts as prepared in accordance with international accounting standards.

7 In this section— “adopted by the United Kingdom” means adopted for use within the United Kingdom by virtue of Chapter 2 or 3 of Part 2 of the International Accounting Standards and European Public Limited-Liability Company (Amendment etc. ) ( EU Exit) Regulations 2019 , “adopted by the European Commission” means adopted by the European Commission in accordance with Regulation (EC) No 1606/2002 of the European Parliament and the Council of 19 July 2002 on the application of international accounting standards (as it has effect in EU law), “ IAS accounts ” means accounts prepared in accordance with international accounting standards, and “ UK companies ” means companies incorporated or formed under the law of a part of the United Kingdom.