Section 478 | Treatment of business combinations

(1)This section applies where two entities—

(a)would, apart from this section, each be the ultimate parent of a worldwide group, and

(b)are treated under international accounting standards as a single economic entity by reason of being a business combination achieved by contract.

(2)This Part has effect as if—

(a)the two entities were consolidated subsidiaries of another entity (the “deemed parent”), and

(b)the deemed parent fell within section 473(1)(a) (conditions for being the ultimate parent of a worldwide group).

(3)In this section “business combination” has the meaning given by international accounting standards.