Finance Act 2002

Authorised accounting methods

5(1)Section 85 is amended as follows.

(2)In subsection (2) (accounting methods authorised only if the conditions in the paragraphs of the subsection are satisfied) for paragraph (a) (conformity to normal accountancy practice) substitute—

(a)subject to paragraphs (b) to (c) below, it is in conformity with generally accepted accounting practice to use that method in that case;.

(3)In paragraph (b) of that subsection (provision for allocating payments under a loan relationship to accounting periods) after “payments under a loan relationship” insert “, or arising as a result of a related transaction,”.