Corporation Tax Act 2009 section 597

Amounts recognised in determining a company's profit or loss

Section 597 defines what is meant by "an amount recognised in determining a company's profit or loss" for the purposes of the derivative contracts rules in Part 7 of the Corporation Tax Act 2009.

• An amount recognised in determining a company's profit or loss is one that appears in the company's accounts for the period as an item of profit or loss
• This includes amounts originally recognised as other comprehensive income that are subsequently reclassified (or "recycled") into profit or loss
• The terms "item of profit or loss" and "item of other comprehensive income" take their meaning from accounting standards
• The definition ensures that all relevant gains, losses and income flowing through the profit or loss account are brought within the derivative contracts tax rules