Section 1226 Accounts not conforming with GAAP

(1)

Subsection (2) applies if—

(a)

a company incurs expenses of management, and

(b)

the company draws up accounts for a particular period of account, and

(c)

the expenses of management would have been debited in those accounts if they had been treated in those accounts in accordance with generally accepted accounting practice, but

(d)

they are not debited in those accounts in accordance with generally accepted accounting practice.

(2)

The expenses of management are referable to the accounting period to which they would have been referable under section 1225(1) or (2) if they had been debited in those accounts in accordance with generally accepted accounting practice.

Notes on Chapter 2

Modifications

C1: Pt. 16 Ch. 2 modified by 2010 c. 4, s. 676AJ(2) (as inserted (with effect in accordance with Sch. 4 para. 190 of the amending Act) by Finance (No. 2) Act 2017 (c. 32), Sch. 4 para. 75)