Skip to content
Solved

CFM95470 | Interest restriction: groups, periods and financial statements: financial statements: financial statements not acceptable

From HM Revenue & Customs · Corporate Finance Manual

Financial statements are only ‘acceptable’ when they meet certain conditions. If they fail to meet these conditions, then the actual statements drawn up are ignored and the calculations are based on the amounts that would have been included in international accounting standards (IAS) financial statements

The conditions

Financial statements will be treated as acceptable if one of the following conditions is met:

  1. They are IAS financial statements.

  2. They are not IAS financial statements, but the amounts recognised are not materially different from what would have been recognised in IAS financial statements.

  3. They are drawn up in accordance with UK GAAP.

  4. They are drawn up in accordance with generally accepted accounting principles and practice of one of the following territories:

  • Canada

  • China

  • India

  • Japan

  • South Korea

  • United States of America