Corporation Tax Act 2009 section 595

General principles about the bringing into account of credits and debits

Section 595 establishes the general principles for identifying and bringing into account the credits and debits relating to derivative contracts, based on amounts recognised in a company's accounts prepared under generally accepted accounting practice.

• Credits and debits for derivative contracts are based on amounts recognised in the company's profit or loss under generally accepted accounting practice
• Where an accounting period does not match the company's period of account, amounts must be apportioned on a time basis under section 1172 of CTA 2010
• If time-based apportionment would produce an unreasonable or unjust result, amounts are determined as though accounts had been drawn up specifically for that accounting period
• These general principles are overridden where more specific rules elsewhere in Part 7 apply