# Fur Farming (Compensation Scheme) (England) Order 2001, Paragraph 7: Calculation of average net trading profits


For the purposes of calculating P in paragraph 6 above—
(a) subject to paragraph 8 to 10 below, the average net trading profits of an entitled applicant’s qualifying business shall be the amount produced by the formula
T÷5 , where—
T equals the total of the net trading profits of that qualifying business for each of the accounting periods comprising the reference period;
(b) for each accounting period, the net trading profits of the qualifying business shall be the net trading profits of that business assessed in accordance with UK GAAP;
(c) where, during an accounting period, a business carried on by an entitled applicant consisted partly of a qualifying business and partly of a non-qualifying business, the net trading profits of the qualifying business for that accounting period shall exclude any element of revenue or costs so far as it related to the non-qualifying business; and
(d) where, in any accounting period, any revenue or costs related partly to a qualifying business and partly to a non-qualifying business, such revenue or costs shall be apportioned between the qualifying business and the non-qualifying business in accordance with—
(i) UK GAAP; and
(ii) accepted costing practice.

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Source: https://www.legislation.gov.uk/uksi/2001/3853/schedule/5/paragraph/7 (the official version)
Page: https://openlegislation.uk/fur-farming-compensation-scheme-england-order-2001/schedule-5/paragraph-7
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.