Commentary on Sections Overview Chapter 2: Management expenses Section 1231: Absence of accounts
3118.This section sets out what happens if there are no accounts. It is based on sections 75B and 578A of ICTA.
3119.The reversal amount is the amount that would have been credited to GAAP accounts for the company’s accounting period.
3120.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), UK GAAP applies.
3121.The combined effect of section 50(1) and (4) of FA 2004 is that in section 75B(10) GAAP means UK GAAP. A similar point arises in section 1227. In each case the section specifies UK GAAP.