Commentary on Sections Overview Chapter 3: Credits and debits to be brought into account: general Section 599: Meaning of “amounts recognised for accounting purposes”
1617.This section defines “amounts recognised for accounting purposes” by reference to the case of a company that has not prepared accounts in accordance with generally accepted accounting practice. It is based on paragraph 17A(2), (3) and (4) of Schedule 26 to FA 2002.
1618.This section is particularly relevant to the application of section 595 and the interpretative provision in section 597.
1619.See the commentary on section 595(2) for the relevance of “generally accepted accounting practice”. Unless a company uses international accounting standards for a period, the default meaning of “generally accepted accounting practice” is UK generally accepted accounting practice (see section 50(1) of FA 2004). When this section applies, it therefore uses UK generally accepted accounting practice (as defined in section 50(4) of FA 2004).