49U.K.In section 50 of FA 2004 (generally accepted accounting practice), for subsections (2) and (3) substitute—
“(2)In the Tax Acts “international accounting standards” has the same meaning as in Regulation (EC) No 1606/2002 of the European Parliament and the Council of 19 July 2002 on the application of international accounting standards.
(3)Where the European Commission has in accordance with that Regulation adopted an international accounting standard with modifications, then as regards matters covered by that standard—
(a)generally accepted accounting practice with respect to IAS accounts shall be regarded as permitting the use of the standard either with or without the modifications, and
(b)accounts prepared on either basis shall be regarded for the purposes of the Tax Acts as prepared in accordance with international accounting standards.”.
50U.K.In sections 50(6), 51(6), 52(3) and 54(2) of FA 2004 (periods of account in relation to which the sections have effect), omit paragraph (b) and the word “and” preceding it. This amendment shall be deemed always to have had effect.
51U.K.In Part 4 of Schedule 10 to FA 2004 (amendments relating to foreign currency accounting), after paragraph 78 insert—
79Where a company carries forward to its first period of account beginning on or after 1st January 2005 an amount by way of—
(a)management expenses brought forward under section 75 of the Taxes Act 1988,
(b)losses brought forward under section 392B or 393 of that Act, or
(c)non-trading deficits on loan relationships brought forward under section 83 of the Finance Act 1996,
that amount shall be translated into sterling using the London closing exchange rate for the last day of the previous period of account.”.