307General principles about the bringing into account of credits and debitsU.K.
(1)This Part operates by reference to the accounts of companies and amounts recognised for accounting purposes.
(2)The general rule is that the amounts to be brought into account by a company as credits and debits for any period for the purposes of this Part [F1in respect of the matters mentioned in section 306A(1)] are those that are recognised in determining the company's profit or loss for the period in accordance with generally accepted accounting practice.
[F2(2A)Subsections (2B) and (2C) apply if an accounting period of a company does not coincide with one or more of its periods of account.
(2B)The amounts referred to in subsection (2) are to be determined by apportionment in accordance with section 1172 of CTA 2010 (time basis).
(2C)But if it appears that apportionment in accordance with that section would work unreasonably or unjustly for an accounting period, subsection (2) is to be read as referring to amounts that would have been recognised in determining the company's profit or loss for that period in accordance with generally accepted accounting practice if accounts had been drawn up for that period.]
F3(3). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F3(4). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F3(5). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
[F4(6)This section is subject to the following provisions of this Part.]
Textual Amendments
F1Words in s. 307(2) inserted (with effect in accordance with Sch. 7 Pt. 6 of the amending Act) by Finance (No. 2) Act 2015 (c. 33), Sch. 7 para. 4(2)
F2S. 307(2A)-(2C) inserted (with effect in accordance with Sch. 7 Pt. 6 of the amending Act) by Finance (No. 2) Act 2015 (c. 33), Sch. 7 para. 4(3)
F3S. 307(3)-(5) omitted (with effect in accordance with Sch. 7 Pt. 6 of the amending Act) by virtue of Finance (No. 2) Act 2015 (c. 33), Sch. 7 para. 4(4)
F4S. 307(6) substituted (with effect in accordance with Sch. 7 Pt. 6 of the amending Act) by Finance (No. 2) Act 2015 (c. 33), Sch. 7 para. 4(5)