Taxation (International and Other Provisions) Act 2010 section 481

Actual financial statements not drawn up on acceptable principles

Section 481 explains what happens when a worldwide group's financial statements are not prepared using an acceptable accounting framework, and defines which accounting standards are considered acceptable for the purposes of the corporate interest restriction rules.

• Financial statements must be prepared under one of the recognised acceptable accounting frameworks: IAS, UK GAAP, or the generally accepted accounting principles of Canada, China, India, Japan, South Korea or the United States of America
• Statements are also acceptable if the amounts recognised are not materially different from those that would appear in IAS financial statements
• If the actual financial statements are not drawn up on acceptable principles, they are ignored and the group is treated as if IAS financial statements had been prepared for the period
• HMRC has the power to amend the list of acceptable accounting frameworks by regulations