In deciding which accounts to use in determining earnings the
decision maker should note the following
1) in order to use the period of the accounts of a business
as the assessment period the decision maker has to have
in all cases a profit and loss account (or a combined
trading and profit and loss account) which satisfies DMG37003
2) the period of the accounts must also begin and end within
certain times (DMG32051
1), and there could be odd days at either end (DMG32053).
3) where it would be appropriate to the employment, the
decision maker should also have a trading account (unless there is
a combined trading and profit and loss account) and a balance sheet
4) in some cases both a trading account and a balance sheet
are needed
5) the decision maker has to decide when either, or both, of
them are needed
