Taxation (International and Other Provisions) Act 2010 section 431

Interpretation of Chapter

Section 431 defines two key accounting terms used throughout the Chapter, ensuring they carry the same meaning as they do in standard accounting practice.

• The Chapter uses two specific accounting expressions that need to be understood consistently
• "Item of profit or loss" takes the same meaning it has for accounting purposes
• "Item of other comprehensive income" also takes the same meaning it has for accounting purposes
• By anchoring these definitions to accounting standards, the legislation ensures alignment between tax rules and financial reporting