The legislation covers changes of accounting policy where the accounting policy both before and after the change is GAAP compliant (see D1.611). This could be when a company moves from using UK GAAP to using international accounting standards, or vice versa1, or could also be when the standards are changed by the relevant accounting bodies.
The rules cover two circumstances, when there is a change in value of the intangible asset from one accounting period and also where an intangible asset is disaggregated into other intangible fixed assets. These are detailed below.
Change in accounting value of an intangible asset
Special provisions apply where a change in the accounting treatment applied to an intangible fixed asset results in a difference between the value at which an intangible fixed asset is carried in a company's accounts at the end of one accounting period and the value at which it is shown in the accounts at the beginning of the next. These provisions apply where, in each of the two accounting periods, the company's accounting
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Web page updated on 17 Mar 2025 13:50