Changes in accounting standards

465APower to make regulations where accounting standards change

1

The Treasury may by regulations make provision for cases where, in consequence of a change in accounting standards, there is a relevant accounting change.

2

“Change in accounting standards” means the issue, revocation, amendment or recognition of, or withdrawal of recognition from, an accounting standard by an accounting body.

3

“Relevant accounting change” means a change in the way in which a company is permitted or required, for accounting purposes, to recognise amounts which—

a

are brought into account by the company as credits or debits for any period for the purposes of this Part, or

b

would be so brought into account but for any provision made by or under this Part.

4

Regulations under subsection (1) may amend this Part (apart from this section).

5

Regulations under subsection (1) may—

a

make different provision for different cases,

b

make incidental, supplemental, consequential and transitional provision and savings, and

c

make provision subject to an election or other specified circumstances.

6

Regulations making consequential provision by virtue of subsection (5)(b) may, in particular, include provision amending a provision of the Corporation Tax Acts.

7

Regulations under subsection (1) may apply to a pre-commencement period if they make provision in relation to a relevant accounting change which may or must be adopted, for accounting purposes, for a period of account, or part of a period of account, which coincides with that pre-commencement period.

8

In this section—

• “accounting body” means the International Accounting Standards Board or the Accounting Standards Board, or a successor body to either of those Boards;

• “accounting standard” includes any statement of practice, guidance or other similar document;

• “pre-commencement period”, in relation to regulations, means an accounting period, or part of an accounting period, which begins before the regulations are made.