Finance Act 2005

Schedule 29 to FA 2002

46 (1) Paragraph 134 of Schedule 29 to FA 2002 (intangible fixed assets: references to amounts recognised in profit and loss account) is amended as follows.

(2) In the paragraph heading for “profit and loss account” substitute “determining profit or loss”.

(3) Make the existing provision sub-paragraph (1).

(4) In that sub-paragraph—

(a) in the opening words, for “a company’s profit and loss account” substitute “determining a company’s profit or loss” and for “include” substitute “are to”;

(b) in sub-paragraph (a) after “recognised in” insert “the company’s profit and loss account or income statement,”; and

(c) omit the words following paragraph (b).

(5) After that sub-paragraph insert—

“(2) An amount that in accordance with generally accepted accounting practice is shown as a prior period adjustment in any such statement as is mentioned in sub-paragraph (1) shall be brought into account for the purposes of this Schedule in computing the company’s profits and losses for the period to which the statement relates.

This does not apply to an amount recognised for accounting purposes by way of correction of a fundamental error.”.