Corporation Tax Act 2009 section 717

Companies without GAAP-compliant accounts

Section 717 explains how the intangible fixed assets rules apply when a company either does not prepare accounts that comply with generally accepted accounting practice (GAAP), or does not prepare accounts at all.

• If a company's accounts are not GAAP-compliant, or no accounts are prepared at all, the intangible fixed assets rules apply as though GAAP-compliant accounts had been drawn up.
• Any references to amounts recognised for accounting purposes are treated as the amounts that would have appeared in GAAP-compliant accounts for the period in question.
• This treatment extends to any earlier accounting period whose figures feed into the current period's accounts.
• Where a later period's accounts are themselves GAAP-compliant but rely on figures from an earlier non-compliant period, the later accounts may be adjusted to reflect the corrections that would have been needed in the earlier period.