Corporation Tax Act 2009 section 572

Profits and losses to be calculated using credits and debits given by this Part

Section 572 establishes that companies must use the credits and debits framework provided by Part 7 of the Act to calculate their profits and losses from derivative contracts.

• Profits and losses from a company's derivative contracts must be calculated using the credits and debits specified in Part 7 of the Act.
• The credits and debits approach aligns with standard accounting terminology and practice.
• The calculations are grounded in accounts prepared under generally accepted accounting practice (GAAP).
• Exceptions exist for securities with embedded derivatives (deemed options and contracts for differences), covered by sections 652 to 658.