MTT21210 - Calculating the effective tax rate: Adjusted profits: Changes in accounting principles
Where:
- there is a change to the net value of a member’s assets and liabilities at the start of an accounting period
- that change is attributable to a change in accounting principle or policy, and
- that accounting principle or policy change affects the income or expenses reflected in the member’s adjusted profits,
the amount of that change should be reflected in the adjusted profits for that period.
This is set out in section 146 of Finance (No.2) Act 2023.