Companies Act 2014 section 276

Construction of references to realised profits

Section 276 clarifies how the term "realised profits" should be understood when used in the context of a company's entity financial statements.

• Realised profits are those profits recognised as realised under generally accepted accounting principles at the time the entity financial statements are prepared.
• The definition is a clarification of existing law, not a new rule, and is stated for the avoidance of doubt.
• This definition does not override or limit the interpretation of other accounting terms by reference to generally accepted accounting principles or practice.
• Any specific provision elsewhere that treats a particular category of profit as realised continues to apply independently of this section.

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