Accruals basis: Difference between revisions
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imported>Doug Williamson (Link with Loan relationship income) |
imported>Doug Williamson (Updated entry. Source ACT Glossary of terms) |
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A basis of taxation which follows the accruals basis of financial accounting. | A basis of taxation which follows the accruals basis of financial accounting. | ||
Loan relationship income is taxed on an accruals basis for UK tax purposes. | |||
Revision as of 10:48, 19 November 2014
1. In financial accounting, the spreading of profits and losses on hedging instruments over the life of the underlying exposure being hedged.
2.
In accounting more generally, the appropriate spreading of income and expenditure items into the periods to which they relate. This may differ from the period in which the associated cash receipts or payments take place. (An alternative simpler basis of accounting would be a cash basis.)
3.
A basis of taxation which follows the accruals basis of financial accounting.
Loan relationship income is taxed on an accruals basis for UK tax purposes.
4. UK Tax. The recognition for UK tax purposes of all profits and losses on a loan relationship over the life of the loan.
