Section 1227: Accounts not drawn up
3108.This section gives the timing rule if there are no accounts. It is based on section 75A(7) and (8) of ICTA.
3109.The rule is that the management expenses are “referable to” the accounting period into which they would have fallen if GAAP accounts had been drawn up.
3110.There are alternative definitions of GAAP in section 50 of FA 2004. International standards apply if the company “prepares accounts in accordance with international accounting standards”. In any other case (including the case where no accounts are prepared), the United Kingdom standard (UK GAAP) applies.
3111.The combined effect of section 50(1) and (4) of FA 2004 is that in section 75A(8) GAAP means UK GAAP. A similar point arises in section 1231. In each case the section specifies UK GAAP.