Schedule 1, Part 2, Section A Accounting principles (paras. 10-15A)
Preliminary
(1) The amounts to be included in respect of all items shown in a company's accounts must be determined in accordance with the principles set out in this Section.
(2) But if it appears to the company's directors that there are special reasons for departing from any of those principles in preparing the company's accounts in respect of any financial year they may do so, in which case particulars of the departure, the reasons for it and its effect must be given in a note to the accounts.
Accounting principles
11. The company is presumed to be carrying on business as a going concern.
12. Accounting policies and measurement bases must be applied consistently within the same accounts and from one financial year to the next.
13. The amount of any item must be determined on a prudent basis, and in particular -
(a) only profits realised at the balance sheet date must be included in the profit and loss account,