Section 269BD — Corporation Tax Act 2010: Meaning of “group”

Meaning of “group” 269BD 1 In this Part “ group ” means a group for the purposes of—

a those provisions of international accounting standards relating to the preparation of consolidated financial statements (whether or not the company that is the parent within the meaning of those provisions (“the parent company”) prepares financial statements under those standards), or b in a case where subsection (2) applies, those provisions of US GAAP which relate to the preparation of consolidated financial statements.

2 This subsection applies if—

a as at the end of a period of account of the parent company—

i the parent company is resident in a territory outside the United Kingdom, ii generally accepted accounting practice for companies resident in that territory is or includes US GAAP , and iii the parent company is a parent for the purposes of those provisions of US GAAP which relate to the preparation of consolidated financial statements (as well as being a parent for the purposes of the provisions mentioned in subsection (1)(a)),

and b the parent company prepares consolidated financial statements for the period of account under US GAAP.

3 Accordingly, for the purposes of this Part a company is a member of a group if—

a it is the parent company in relation to the group, or b it is a member of the group for the purposes of the provisions mentioned in subsection (1)(a) or (b) (as the case may be).

4 In this section “ US GAAP ” means United States Generally Accepted Accounting Principles.

5 Section 1127(1) and (3) (meaning of “generally accepted accounting practice”) do not apply for the purposes of this section.