Section 997 — Income Tax Act 2007: Meaning of “generally accepted accounting practice” and related expressions

Meaning of “generally accepted accounting practice” and related expressions 997 1 In the Income Tax Acts “ generally accepted accounting practice ” means UK generally accepted accounting practice. This is subject to subsection (3).

2 In the Income 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 Income Tax Acts “ generally accepted accounting practice ” means generally accepted accounting practice in relation to IAS accounts.

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

5 In the Income Tax Acts “ international accounting standards ” has the same meaning as in the Corporation Tax Acts (see section 1127 of CTA 2010 ).

6 In this section— “ 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.