# Finance (No. 2) Act 2023, Section 140: Profits adjusted to be profits before certain purchase accounting adjustments

Extent: E+W+S+N.I.

(1) The underlying profits of a member of a multinational group for an accounting period are to be adjusted so that they do not reflect relevant share acquisition adjustments.
(2) “Relevant share acquisition adjustment” means a purchase accounting adjustment to the consolidated financial statements of an ultimate parent of a multinational group arising as a result of an entity becoming a member of the group as a result of the acquisition of ownership interests in the entity by an existing member of the group.
(3) This section does not apply to a relevant share acquisition adjustment resulting from an acquisition of ownership interests before 1 December 2021 if the members of the group do not have sufficient records to identify the adjustment made with reasonable accuracy.

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Source: https://www.legislation.gov.uk/ukpga/2023/30/section/140 (the official version)
Page: https://openlegislation.uk/finance-no-2-act-2023/section-140
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.