844 Treatment of development costs
844 Treatment of development costs
Companies Act 2006 | Legislation

(1)     Where development costs are shown or included as an asset in a company's accounts, any amount shown or included in respect of those costs is treated—

(a)     for the purposes of section 830 (distributions to be made out of profits available for the purpose) as a realised loss, and

(b)     for the purposes of section 832 (distributions by investment companies out of accumulated revenue profits) as a realised revenue loss.

This is subject to the following exceptions.

(2)     Subsection (1) does not apply to any part of that amount representing an unrealised profit made on revaluation of those costs.

(3)     Subsection (1) does not apply if—