Section 734 | Meaning of “realisation”

(1)References in this Part to the realisation of an intangible fixed asset are to a transaction resulting, in accordance with generally accepted accounting practice—

(a)in the asset ceasing to be recognised in the company's balance sheet, or

(b)in a reduction in the accounting value of the asset.

(2)In subsection (1) “transaction” includes any event giving rise to a gain recognised for accounting purposes.

(3)In relation to an intangible fixed asset that has no balance sheet value (or no longer has a balance sheet value), subsections (1) and (2) apply as if it did have a balance sheet value.

(4)References in this Part to a “part realisation” are to a realisation falling within subsection (1)(b).