Part 7Tax treatment of financing costs and income
CHAPTER 10Other interpretative F1and supplementary provisions
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.
Words in Pt. 7 Ch. 10 heading substituted (retrospectively) by Finance (No. 3) Act 2010 (c. 33), Sch. 5 paras. 29, 36(1)