Chapter 10: Other interpretative provisions
Overview
623.This Chapter defines a number of terms used in the Part.
Section 337: The worldwide group
624.This section defines “the worldwide group” for the purposes of this Part as any group of entities that is “large” (defined in section 344). It is based on paragraph 78 of Schedule 15 to FA 2009.
Section 338: Meaning of “group”
625.This section provides that the term “group” for the purposes of this Part takes it meaning from international accounting standards, thus establishing that “the worldwide group” defined in section 337 will, in the majority of cases, be the group of companies whose results are included in the consolidated accounts of the group headed by the ultimate parent. It is based on paragraph 79 of Schedule 15 to FA 2009.
Section 339: Meaning of “ultimate parent”
626.This section defines “ultimate parent” for the purposes of this Part. It is based on paragraph 80 of Schedule 15 to FA 2009.
Section 340: Meaning of “corporate entity”
627.This section defines “corporate entity” for the purposes of this Part. It is based on paragraph 81 of Schedule 15 to FA 2009.
Section 341: Meaning of “relevant non-corporate entity”
628.This section defines “relevant non-corporate entity” for the purposes of this Part. It is based on paragraph 82 of Schedule 15 to FA 2009.
Section 342: Treatment of entities stapled to corporate, or relevant non-corporate, entities
629.This section provides that, where a corporate or relevant non-corporate entity is stapled to another entity, they will be treated as a single corporate or relevant non-corporate entity for the purposes of the Part. It is based on paragraph 83 of Schedule 15 to FA 2009.
Section 343: Treatment of business combinations
630.This section treats entities as one corporate entity for the purposes of the Part if international accounting standards treat them as a single economic entity by reason of being a business combination achieved by contract. It is based on paragraph 84 of Schedule 15 to FA 2009.
Section 344: Meaning of “large” in relation to a group
631.This section defines a large group as a group no member of which is within the category of micro, small and medium-sized enterprises as defined (with modifications) in the Annex to European Commission Recommendation 2003/361/EC of 6 May 2003. It is based on paragraph 85 of Schedule 15 to FA 2009.
Section 345: Meaning of “UK group company” and “relevant group company”
632.This section defines “UK group company” and “relevant group company” for the purposes of this Part. It is based on paragraph 86 of Schedule 15 to FA 2009.
Section 346: Financial statements of the worldwide group
633.This section explains which consolidated financial statements of the worldwide group are to be used in applying this Part. It is based on paragraph 87 of Schedule 15 to FA 2009.
Section 347: Non-compliant financial statements of the worldwide group
634.This section provides that where a group has not prepared consolidated financial statements of the worldwide group in accordance with acceptable accounting standards, the Part applies as if the group had prepared consolidated financial statements for the period in accordance with international accounting standards. It is based on paragraph 88 of Schedule 15 to FA 2009.
Section 348: Non-existent financial statements of the worldwide group
635.This section provides that where consolidated financial statements of an ultimate parent and its subsidiaries are not prepared, the Part will apply as if financial statements had been drawn up under international accounting standards. It is based on paragraph 89 of Schedule 15 to FA 2009.
Section 349: References to amounts disclosed in financial statements
636.This section sets out what is meant by “amounts disclosed in financial statements”. It is based on paragraph 90 of Schedule 15 to FA 2009.
Section 350: Translation of amounts disclosed in financial statements
637.This section provides that amounts disclosed in financial statements for a period which are expressed in a currency other than sterling must be converted at the average rate of exchange for that period. It is based on paragraph 91 of Schedule 15 to FA 2009.
Section 351: Expressions taking their meaning from international accounting standards
638.This section provides for specified terms within the Part to take their meaning for the purposes of the Part from the definition given to them, for the time being, by international accounting standards. It is based on paragraph 92 of Schedule 15 to FA 2009.
Section 352: Meaning of “relevant accounting period”
639.This section defines a “relevant accounting period” for the purposes of this Part. It is based on paragraph 93 of Schedule 15 to FA 2009.
Section 353: Other expressions
640.This section defines various terms for the purposes of this Part. It is based on paragraph 94 of Schedule 15 to FA 2009.