Corporation Tax Act 2009 section 599

Meaning of "amounts recognised for accounting purposes"

Section 599 explains what "amounts recognised for accounting purposes" means in the context of derivative contracts, particularly where a company has not prepared accounts compliant with generally accepted accounting practice (GAAP).

• If a company prepares accounts that do not comply with GAAP, or prepares no accounts at all, the derivative contracts rules apply as though GAAP-compliant accounts had been prepared.
• References to amounts recognised for accounting purposes include amounts that would have been recognised had GAAP-compliant accounts been drawn up for the relevant period and any earlier period on which those accounts depend.
• An earlier period is considered relevant if the accounts for the later period rely to any extent on figures derived from that earlier period.
• Unless the company uses international accounting standards, the default meaning of GAAP is UK generally accepted accounting practice.