Commentary on Sections Overview Overview Section 308: Amounts recognised in determining a company’s profit or loss
1059.This section explains what is meant by amounts recognised in determining a company’s profit or loss account for a period. It is based on section 85B(1) and (2) of FA 1996.
1060.This section updates the references in section 85B(1)(a) and (b) of FA 1996 to a company’s statement of income and gains, etc in line with current accountancy practice.
1061.Accounting terms appearing more than once are included in section 476 (other definitions). “Profit and loss account” (subsection (1)(a)) and “prior period adjustment” (subsection (2)) appear here only and take their ordinary accountancy meaning.
1062.Subsection (1)(b) rewrites “statement of recognised gains and losses” as “statement of total recognised gains and losses” as being the usual accountancy term.
1063.“Generally accepted accounting principles” appears in the Schedule 4 to this Act.
1064.Part 2(6) of Schedule 11 to F(No 2)A 2005 repeals section 85B(6) of FA 1996 with effect from a date to be appointed.