Part 7Tax treatment of financing costs and income

CHAPTER 10Other interpretative F1and supplementary provisions

Annotations:
Amendments (Textual)
F1

Words in Pt. 7 Ch. 10 heading substituted (retrospectively) by Finance (No. 3) Act 2010 (c. 33), Sch. 5 paras. 29, 36(1)

347Non-compliant financial statements of the worldwide group

1

This section applies if—

a

financial statements of the worldwide group are drawn up in respect of a period,

b

those financial statements are not acceptable, and

c

the amounts disclosed in those financial statements are materially different from those that would be disclosed in IAS financial statements for the period.

2

This Part (apart from this section) applies as if IAS financial statements had been drawn up in respect of the period.

3

For the purposes of this section, financial statements are “acceptable” if—

a

they are drawn up in accordance with international accounting standards,

b

they meet such conditions relating to accounting standards, or accounting principles or practice, as may be specified in regulations made by the Commissioners, or

c

conditions A, B and C are met.

4

Condition A is that—

a

the companies whose results are included in the financial statements, and

b

the companies whose results would be included in IAS financial statements of the worldwide group for the same period, were such statements drawn up,

are the same.

5

Condition B is that—

a

the transactions whose results are reflected in the amounts mentioned in section 332(1)(a) to (g) in the financial statements, and

b

the transactions whose results would be reflected in those amounts in IAS financial statements of the worldwide group for the same period, were such statements drawn up,

are the same.

6

Condition C is that the amounts mentioned in section 332(1)(a) to (d) in the financial statements are calculated using the effective interest method.

7

In this section, references to IAS financial statements of the worldwide group for a period are to financial statements of the group for the period drawn up in accordance with international accounting standards.