# The Investment Trusts (Approval of Accounting Methods for Creditor Relationships) Order 2001, Article 4: Modifications of the main method and the simple method


(1) The main method and the simple method shall be modified as follows.
(2) For paragraph R604 in the Statement there shall be substituted the following paragraph—
“R604 An ITC shall be under an obligation—
(a) to make proper provision for allocating payments under a creditor relationship to accounting periods (and that expression has the same meaning as in sub-section (3) of section 85 of the Finance Act 1996, on the assumption that the words “loan relationship” in that sub-section were replaced with the words “creditor relationship”), and
(b) not to make any provision (other than provision comprised in authorised arrangements for bad debt, within the meaning in section 85(5)(a) of the Finance Act 1996) that gives debits by reference to the valuation at different times of any asset representing a creditor relationship (within the meaning in section 103(1) of the Finance Act 1996).”
(3) Paragraph R606 in the Statement shall be omitted.
(4) In this Order, “the modified main method” and “the modified simple method” mean the main method, and the simple method, as so modified, respectively.

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Source: https://www.legislation.gov.uk/uksi/2001/391/article/4 (the official version)
Page: https://openlegislation.uk/investment-trusts-approval-of-accounting-methods-for-creditor-relationships-order-2001/article-4
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.