Section 1217IA — Finance Act 2014: Calculation of profits or losses of separate theatrical trade

Calculation of profits or losses of separate theatrical trade 1217IA 1 For the first period of account during which the separate theatrical trade is carried on, the following are brought into account—

a as a debit, the costs of the theatrical production incurred (and represented in work done) to date;

b as a credit, the proportion of the estimated total income from the production treated as earned at the end of that period.

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

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

3 The proportion of the estimated total income treated as earned at the end of a period of account is— 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 theatrical production; I is the estimated total income from the theatrical production.