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Chapter CFM92410

Document Cited in Related
Vincent
Published date16 April 2016
Record NumberCFM92410
CourtHM Revenue & Customs
This guidance applies to worldwide group periods of account ending before or straddling 1 April 2017.
The amounts to include in the available amount

The definition of the ‘available amount’ is in TIOPA10/S332, and it is the sum of certain amounts disclosed in the financial statements of the group for the period of account of the worldwide group. See CFM92430 for the amounts included in the available amount.

These will be amounts in the consolidated financial statements of the worldwide group. So, in accordance with IFRS 10: Consolidated Financial Statements, under the consolidation procedures:

  • intra-group balances;
  • intra-group transactions; and
  • intra group income and expenses

will be eliminated in full. This means that the available amount should not take account of any of the intra-group financing amounts paid or due to other members of the worldwide group.

The accounting group may contain partnerships or members of the worldwide group may be members of partnerships. This could lead to the amounts taken into account in computing the available amount differing from the amounts disclosed in financial statements. The treatment of partnerships is dealt with at CFM92459.

Therefore the available amount represents, essentially, the external financing costs of the worldwide group.

TIOPA10/S 336 confirms that expressions, such as ‘disclosed’, have the meaning given by IAS.

Deriving amounts from consolidated accounts

In most cases, it will be necessary for a group to subject the figures on the face of consolidated financial statements to some analysis in order to compute the available amount. TIOPA10/S349(1) explicitly extends references to ‘amounts disclosed in...

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