COMPANIES (AMENDMENT) ACT, 1986

• (2) Provisions for diminution in value shall be made in respect of any fixed asset which has diminished in value if the reduction in its value is expected to be permanent (whether its useful economic life is limited or not) and the amount to be included in respect of it shall be reduced accordingly; and any such provisions which are not shown separately in the profit and loss account shall be disclosed (either separately or in aggregate) in a note to the accounts.

• (3) Where the reasons for which any provision was made in accordance with subparagraph (1) or (2) of this paragraph have ceased to apply to any extent, that provision shall be written back to the extent that it is no longer necessary; and any amounts written back in accordance with this subparagraph which are not shown in the profit and loss account shall be disclosed (either separately or in aggregate) in a note to the accounts.

Rules for determining particular fixed asset items

• (2) If an amount is included in a company's balance sheet in respect of development costs, the following information shall be given in a note to the accounts—

• (a) the period over which the amount of those costs originally capitalised is being or is to be written off, and

• (b) the reasons for capitalising the costs in question.

• (2) Subject to subparagraph (3) of this paragraph, the amount of the consideration for any goodwill acquired by a company shall be reduced by provisions for depreciation calculated to write off that amount systematically over a period chosen by the directors of the company.

• (3) The period chosen shall not exceed the useful economic life of the goodwill in question.

• (4) In any case where any goodwill acquired by a company is shown or included as an asset in the company's balance sheet, the period chosen for writing off the consideration for that goodwill and the reasons for choosing that period shall be disclosed in a note to the accounts.

CURRENT ASSETS

• (2) Where the reasons for which any provision for diminution in value was made under subparagraph (1) of this paragraph have ceased to apply to any extent, that provision shall be written back to the extent that it is no longer necessary.

MISCELLANEOUS

Excess of money owed over value received as an asset item

• (2) Where any such amount exists—

• (a) it shall be written off by reasonable amounts each year and shall be completely written off before repayment of the debt; and

• (b) if the amount not written off is not shown as a separate item in the company's balance sheet, it shall be disclosed in a note to the accounts.

Assets included at a fixed amount

• (a) amongst the fixed assets of a company under the item “tangible assets”, or

• (b) amongst the current assets of a company under the item “raw materials and consumables”,

may be included at a fixed quantity and value.

• (2) Subparagraph (1) of this paragraph applies to assets of a kind which are constantly being replaced, where—

• (a) their overall value is not material to assessing the company's state of affairs, and

• (b) their quantity, value and composition are not subject to material variation.

Determination of purchase price or production cost

• (2) The production cost of an asset shall be determined by adding to the purchases price of the raw materials and consumables used the amount of the costs incurred by the company which are directly attributable to the production of that asset.

• (3) In addition there may be included in the production cost of an asset—

• (a) a reasonable proportion of the costs incurred by the company which are only indirectly attributable to the production of that asset, but only to the extent that they relate to the period of production, and

• (b) interest on capital borrowed to finance the production of that asset, to the extent that it accrues in respect of the period of production:

Provided, however, in a case within clause (b) of this subparagraph that the inclusion of the interest in determining the cost of that asset is disclosed in a note to the accounts.

• (4) In the case of current assets, distribution costs may not be included in production costs.

• (a) any assets which fall to be included under any item shown in a company's balance sheet under the general item “stocks”, and

• (b) any assets which are fungible assets (including investments),

may be determined by the application of any of the methods mentioned in subparagraph (2) of this paragraph in relation to any such assets of the same class.

The method chosen must be one which appears to the directors to be appropriate in the circumstances of the company.

• (2) Those methods are:

• (a) the method known as “first in, first out” (FIFO),

• (b) a weighted average price, and

• (c) any other method similar to any of the methods mentioned above.

• (3) Where, in the case of any company—

• (a) the purchase price or production cost of assets falling to be included under any item shown in the company's balance sheet has been determined by the application of any method permitted by this paragraph, and

• (b) the amount shown in respect of that item differs materially from the relevant alternative amount given below in this paragraph,

the amount of that difference shall be disclosed in a note to the accounts.

• (4) Subject to subparagraph (5) of this paragraph, for the purposes of subparagraph (3) (b) of this paragraph, the relevant alternative amount, in relation to any item shown in a company's balance sheet, is the amount which would have been shown in respect of that item if assets of any class included under that item at an amount determined by any method permitted by this paragraph had instead been included at their replacement cost as at the balance sheet date.

• (5) The relevant alternative amount may be determined by reference to the most recent actual purchase price or production cost before the balance sheet date of assets of any class included under the item in question instead of by reference to their replacement cost as at that date, but only if the former appears to the directors of the company to constitute the more appropriate approach in the case of assets of that class.

• (6) For the purpose of this paragraph, assets of any description shall be regarded as fungible if assets of that description are substantially indistinguishable one from another.

Substitution of original stated amount where price or cost unknown

Part III

ALTERNATIVE RULES IN RELATION TO THE DRAWING UP OF ACCOUNTS

Preliminary

• (2) Those rules, with the omission of paragraphs 4, 9 and 13 to 16, are referred to subsequently in this Part of this Schedule as the depreciation rules; and references subsequently in this Schedule to the historical cost accounting rules do not include the depreciation rules as they apply by virtue of paragraph 20 of this Schedule.

Alternative accounting rules

• (2) Tangible fixed assets may be included at a market value determined as at the date of their last valuation or at their current cost.

• (3) Financial fixed assets may be included either—

• (a) at a market value determined as at the date of their last valuation; or

• (b) at a value determined on any basis which appears to the directors to be appropriate in the circumstances of the company,

but in the latter case particulars of the method of valuation adopted and of the reasons for adopting it shall be disclosed in a note to the accounts.

• (4) Investments of any description falling to be included under item B.III of either of the balance sheet formats set out in Part I of this Schedule may be included at their current cost.

• (5) Stocks may be included at their current cost.

Application of the depreciation rules

• (2) The amount of any provision for depreciation required in the case of any fixed asset by paragraph 6 or 7 of this Schedule as it applies by virtue of subparagraph (1) of this paragraph is referred to below in this paragraph as the adjusted amount; and the amount of any provision which would be required by that paragraph in the case of that asset according to the historical cost accounting rules is referred to as the historical cost amount.

• (3) Where subparagraph (1) of this paragraph applies in the case of any fixed asset, the amount of any provision for depreciation in respect of that asset—

• (a) included in any item shown in the profit and loss account in respect of amounts written off assets of the description in question; or

• (b) taken into account in stating any item so shown which is required by note (11) of the notes on the profit and loss account formats set out in Part I of this Schedule to be stated after taking into account any necessary provisions for depreciation or diminution in value of assets included under it,

may be the historical cost amount instead of the adjusted amount:

Provided that, if the amount of the provision for depreciation is the historical cost amount, the amount of any difference between the two shall be shown separately in the profit and loss account or in a note to the accounts.

Additional information in case of departure from historical cost rules

• (2) The items affected and the basis of valuation adopted in determining the amounts of the assets in question in the case of each such item shall be disclosed in a note to the accounts.

• (3) In the case of each balance sheet item affected (except stocks) either—

• (a) the comparable amounts determined according to the historical cost accounting rules, or

• (b) the differences between those amounts and the corresponding amounts actually shown in the balance sheet in respect of that item,

shall be shown separately in the balance sheet or in a note to the accounts.

• (4) In subparagraph (3) of this paragraph, references in relation to any item to the comparable amounts determined as there mentioned are references to—

• (a) the aggregate amount which would be required to be shown in respect of that item if the amounts to be included in respect of all the assets covered by that item were determined according to the historical cost accounting rules, and

• (b) the aggregate amount of the cumulative provisions for depreciation or diminution in value which would be permitted or required in determining those amounts according to those rules.

Revaluation reserve

• (2) Subparagraph (1) of this paragraph applies in relation to any determination of the value of an asset of a company which takes place before the commencement of this paragraph as it applies to any such determination taking place on or after such commencement.

• (3) The amount of the revaluation reserve shall be shown in the company's balance sheet under a separate sub-heading in the position given for the item “revaluation reserve” in Format 1 or 2 of the balance sheet formats set out in Part I of this Schedule.

• (4) The revaluation reserve shall be reduced to the extent that the amounts standing to the credit of the reserve are, in the opinion of the directors of the company, no longer necessary for the purpose of the accounting policies adopted by the company; but an amount may only be transferred from the reserve to the profit and loss account if either—

• (a) the amount in question was previously charged to that account, or

• (b) it represents realised profit.

• (5) The treatment for taxation purposes of amounts credited or debited to the revaluation reserve shall be disclosed in a note to the accounts.

Part IV

INFORMATION REQUIRED BY WAY OF NOTES TO ACCOUNTS

Preliminary

• (2) Notes to a company's accounts may be contained in the accounts or in a separate document annexed to the accounts.

Information supplementing the balance sheet

Share capital and debentures

• (a) the authorised share capital, and

• (b) where shares of more than one class have been allotted, the number and aggregate nominal value of shares of each class allotted.

• (2) In the case of any part of the allotted share capital that consists of redeemable shares, the following information shall be given—

• (a) the earliest and latest dates on which the company has power to redeem those shares,

• (b) whether those shares must be redeemed in any event or are liable to be redeemed at the option of the company, and

• (c) whether any (and, if so, what) premium is payable on redemption.

• (a) the reason for making the allotment,

• (b) the classes of shares allotted, and

• (c) in respect of each class of shares, the number allotted, their aggregate nominal value and the consideration received by the company for the allotment.

• (a) the reason for making the issue,

• (b) the classes of debentures issued, and

• (c) in respect of each class of debentures, the amount issued and the consideration received by the company for the issue.

• (2) Particulars of any redeemed debentures which the company has power to re-issue shall also be given.

• (3) Where any of the company's debentures are held by a nominee of or trustee for the company, the nominal amount of the debentures and the amount at which they are stated in the accounting records kept by the company in accordance with section 147 of the Principal Act shall be stated.

Fixed assets

• (a) the appropriate amounts in respect of that item as at the date of the beginning of the financial year and as at the balance sheet date respectively,

• (b) the effect on any amount shown in the balance sheet in respect of that item of—

• (i) any revision of the amount in respect of any assets included under that item made during that year on any basis mentioned in paragraph 19 of this Schedule,

• (ii) acquisitions during that year of any assets,

• (iii) disposals during that year of any assets, and

• (iv) any transfers of assets of the company to and from that item during that year.

• (2) The reference in subparagraph (1) (a) of this paragraph to the appropriate amounts in respect of any item as at any date there mentioned is a reference to amounts representing the aggregate amounts determined, as at that date, in respect of assets falling to be included under that item either—

• (a) on the basis of purchase price or production cost (determined in accordance with paragraphs 14 and 15 of this Schedule,) or

• (b) on any basis mentioned in paragraph 19 of this Schedule.

(leaving out of account in either case any provisions for depreciation or diminution in value).

• (3) In respect of each item within subparagraph (1) of this paragraph—

• (a) the cumulative amount of provisions for depreciation or diminution in value of assets included under that item as at each date mentioned in subparagraph (1) (a) of this paragraph,

• (b) the amount of any such provisions made in respect of the financial year concerned,

• (c) the amount of any adjustments made in respect of any such provisions during that year in consequence of the disposal of any assets, and

• (d) the amount of any other adjustments made in respect of any such provisions during that year.

shall be also stated.

• (a) the years (so far as they are known to the directors) in which the assets were severally valued and the several values, and

• (b) in the case of assets that have been valued during the financial year, the names of the persons who valued them or particulars of their qualifications for doing so and (in either case) the bases of valuation used.

Financial assets and investments held as current assets

• (a) how much of that amount is ascribable to listed investments, and,

• (b) how much of any amount so ascribable is ascribable to investments as respects which there has been granted a listing on a recognised stock exchange and how much to other listed investments.

• (2) Where the amount of any listed investments is stated for any item in accordance with subparagraph (1) (a) of this paragraph, the following amounts shall also be stated—

• (a) the aggregate market value of those investments where it differs from the amount so stated, and

• (b) both the market value and stock exchange value of any investments of which the former value is, for the purposes of the accounts, taken as being higher than the latter.

Reserves and provisions

• (a) to or from any reserves, or

• (b) to any provisions for liabilities and charges, or

• (c) from any provision for liabilities and charges otherwise than for the purpose for which the provision was established,

and the reserves or provisions are or would, but for section 4 (6) (b) of this Act, be shown as separate items in the company's balance sheet, the information mentioned in subparagraph (2) of this paragraph shall be given in respect of the aggregate of reserves or provisions included in the same item.

• (2) That information is—

• (a) the amount of the reserves or provisions as at the date of the beginning of the financial year and as at the balance sheet date respectively,

• (b) any amount transferred to or from the reserves or provisions during that year, and

• (c) the source and application respectively of any amounts so transferred.

• (3) Particulars shall be given of each provision included in the item “other provisions” in the company's balance sheet in any case where the amount of that provision is material.

Provision for taxation

Details of indebtedness

• (a) the aggregate amount of any debts included under that item which are payable or repayable otherwise than by instalments and fall due for payment or repayment after the end of the period of five years beginning with the day next following the end of the financial year,

• (b) the aggregate amount of any debts so included which are payable or repayable by instalments any of which fall due for payment after the end of that period,

• (c) the aggregate amount of any debts included under that item in respect of which any security has been given, and

• (d) an indication of the nature of the securities so given,

and, in the case of debts within clause (b) of this subparagraph, the aggregate amount of instalments falling due after the end of that period shall also be disclosed for each such item.

• (2) References in subparagraph (1) of this paragraph to an item shown under “creditors” in the company's balance sheet include references, where amounts falling due to creditors within one year and after more than one year are distinguished in the balance sheet—

• (a) in a case within subparagraph (1) (a) of this paragraph, to an item shown under the latter of those categories, and

• (b) in a case within subparagraph (1) (d) of this paragraph, to an item shown under either of those categories,

and references to items shown under “creditors” include references to items which would, but for section 4 (6) (b) of this Act, be shown under that heading.

• (a) the amount of the arrears, and

• (b) the period for which the dividends or, if there is more than one class, each class of them are in arrears.

Guarantees and other financial commitments

• (2) The following information shall be given with respect to any other contingent liability not provided for—

• (a) the amount or estimated amount of that liability.

• (b) its legal nature, and

• (c) whether any valuable security has been provided by the company in connection with that liability and, if so, what.

• (3) There shall be stated, where practicable—

• (a) the aggregate amount or estimated amount of contracts for capital expenditure, so far as not provided for, and

• (b) the aggregate amount or estimated amount of capital expenditure authorised by the directors which has not been contracted for.

• (4) Particulars shall be given of:

• (a) any pension commitments included under any provision shown in the company's balance sheet, and

• (b) any such commitments for which no provision has been made,

and, where any such commitment relates wholly or partly to pensions payable to past directors of the company, separate particulars shall be given of that commitment so far as it relates to such pensions.

• (5) The following information shall also be given:

• (a) the nature of every pension scheme operated by or on behalf of the company including information as to whether or not each scheme is a defined benefit scheme or a defined contribution scheme,

• (b) whether each such scheme is externally funded or internally financed,

• (c) whether any pension costs and liabilities are assessed in accordance with the advice of a professionally qualified actuary and, if so, the date of the most recent relevant actuarial valuation,

• (d) whether and, if so, where any such actuarial valuation is available for public inspection.

• (6) Particulars shall also be given of any other financial commitments which—

• (a) have not been provided for, and

• (b) are relevant to assessing the company's state of affairs.

• (7) Commitments within any of the preceding subparagraphs undertaken on behalf of or for the benefit of—

• (a) any holding company or fellow subsidiary of the company, or

• (b) any subsidiary of the company,

shall be stated separately from the other commitments within that subparagraph (and commitments within clause (a) of this subparagraph shall also be stated separately from those within clause (b) of this subparagraph).

Miscellaneous matters

• (2) The aggregate amount of any outstanding loans permitted by section 60 of the Principal Act, as amended by the Act of 1983 (other than loans to which subsection (13) (a) of that section refers), shall be shown, indicating separately loans permitted by paragraphs (b) and (c) of the said subsection (13).

• (3) The aggregate amount which is recommended for distribution by way of dividend shall be stated.

Information supplementing the profit and loss account

Separate statement of certain items of income and expenditure

• (2) The amount of interest on or any similar charges in respect of—

• (a) bank loans and overdrafts, and loans made to the company (other than bank loans and overdrafts) which—

• (i) are repayable otherwise than by instalments and fall due for repayment before the end of the period of five years beginning with the day next following the end of the financial year of the company, or

• (ii) are repayable by instalments the last of which falls due for payment before the end of that period, and

• (b) loans of any other kind made to the company.

This subparagraph does not apply to interest or charges on loans to the company from group companies, but, with that exception, it applies to interest or charges on all loans, whether made on the security of debentures or not.

• (3) The amounts respectively provided for redemption of share capital and for redemption of loans.

• (4) The amount of income from listed and unlisted investments.

• (5) The amount of the remuneration of the auditors (including any sums paid by the company in respect of the auditors' expenses).

• (6) The aggregate amounts of the emoluments of, and compensation in respect of loss of office to, directors and compensation in respect of loss of office to past-directors.

Particulars of tax

• (2) Particulars shall be given of any special circumstances which affect liability in respect of taxation on profits, income or capital gains for the financial year concerned or liability in respect of taxation of profits, income or capital gains for succeeding financial years.

• (3) The amount of the charge for corporation tax, income tax and other taxation on profits or capital gains, so far as charged to revenue, including taxation payable outside the State on profits (distinguishing where practicable between corporation tax and other taxation) shall be stated.

These amounts shall be stated separately in respect of each of the amounts which is or would, but for section 4 (6) (b) of this Act, be shown under the following items in the profit and loss account, that is to say, “tax on profit or loss on ordinary activities” and “tax on extraordinary profit or loss”.

Particulars of turnover

• (2) If, in the course of the financial year, the company has supplied markets which, in the opinion of the directors, differ substantially from each other, the amount of the turnover attributable to each such market shall also be stated.

In this subparagraph “market” means a market delimited in a geographical manner.

• (3) In analysing for the purposes of this paragraph the source (in terms of business or in terms of market) of turnover, the directors of the company shall have regard to the manner in which the company's activities are organised.

• (4) For the purpose of this paragraph—

• (a) classes of business which, in the opinion of the directors, do not differ substantially from each other shall be treated as one class, and

• (b) markets which, in the opinion of the directors, do not differ substantially from each other shall be treated as one market,

and any amounts properly attributable to one class of business or (as the case may be) to one market which are not material may be included in the amount stated in respect of another.

• (5) Where in the opinion of the directors the disclosure of any information required by this paragraph would be seriously prejudicial to the interests of the company, that information need not be disclosed, but the fact that any such information has not been disclosed must be stated.

Particulars of staff

• (a) the average number of persons employed by the company in the financial year, and

• (b) the average number of persons employed within each category of persons employed by the company.

• (2) In respect of all persons employed by the company during the financial year who are taken into account in determining the relevant annual number for the purposes of subparagraph (1) (a) of this paragraph, there shall also be stated the aggregate amounts respectively of—

• (a) wages and salaries paid or payable in respect of that year to those persons,

• (b) social welfare costs incurred by the company on their behalf, and

• (c) other pension costs so incurred,

save insofar as these amounts or any of them are stated in the profit and loss account.

• (3) The categories of persons employed by the company by reference to which the number required to be disclosed by subparagraph (1) (b) of this paragraph is to be determined shall be such as the directors may select, having regard to the manner in which the company's activities are organised.

• (4)
• (a) For the purposes of clauses (a) and (b) of subparagraph (1) of this paragraph, the average number of persons employed by a company shall be determined by dividing the relevant annual number by the number of weeks in the financial year of the company.

• (b) For the purposes of this subparagraph, the relevant annual number shall be determined by ascertaining for each week in the financial year of the company concerned—

• (i) in the case of the said clause (a), the number of persons employed under contracts of service by the company in that week (whether throughout the week or not), and

• (ii) in the case of the said clause (b), the number of persons in the category in question of persons so employed,

and, in either case, adding together all the weekly numbers.

Miscellaneous matters

• (2) Particulars shall be given of any extraordinary income or charges arising in the financial year.

• (3) The effect shall be stated of any transactions that are exceptional by virtue of size or incidence notwithstanding the fact that they fall within the ordinary activities of the company.

• (4) Any amount expended on research and development in the financial year, and any amount committed in respect of research and development in subsequent years, shall be stated.

• (5) Where, in the opinion of the directors, the disclosure of any information required by subparagraph (4) of this paragraph would be prejudicial to the interests of the company, that information need not be disclosed, but the fact that any such information has not been disclosed shall be stated.

General

• (2) In respect of every balance sheet or profit and loss account item which would, but for its inclusion in a note to the accounts, be shown in the balance sheet or profit and loss account format set out in Part I of this Schedule and chosen pursuant to section 4 of this Act, there shall also be shown in a note to the accounts the corresponding amount for the financial year immediately preceding that to which the accounts relate and where the corresponding amount is not comparable by reason of—

• (a) a change in accounting policy in the current financial year, or

• (b) a fundamental error in the accounts of an earlier financial year,

it shall be adjusted and particulars of the adjustment and the reasons for it shall be given.

• (3) Subparagraph (2) of this paragraph does not apply in relation to any amount stated by virtue of paragraphs 29 and 32 of this Schedule.

Part V

SPECIAL PROVISIONS WHERE A COMPANY IS A HOLDING COMPANY OR SUBSIDIARY

Company's own accounts

• (2) Where a company is a holding company or a subsidiary of another body corporate and any item required by Part I of this Schedule to be shown in the company's balance sheet, in relation to group companies, includes—

• (a) amounts attributable to dealings with or interests in any holding company or fellow subsidiary of the company, or

• (b) amounts attributable to dealings with or interests in any subsidiary of the company,

the aggregate amounts within paragraphs (a) and (b) of this subparagraph, respectively, shall be shown as separate items, either by way of subdivision of the relevant item in the balance sheet or in a note to the company's accounts.

• (2) Subparagraph (1) of this paragraph does not apply in relation to any shares or debentures—

• (a) in the case of which the subsidiary is concerned as personal representative, or

• (b) in the case of which it is concerned as trustee:

Provided that in the latter case neither the company nor a subsidiary of the company is beneficially interested under the trust, otherwise than by way of security only for the purposes of a transaction entered into by it in the ordinary course of a business which includes the lending of money.

Consolidated accounts of holding company and subsidiaries

• (2) This paragraph is without prejudice to any requirement of the Companies Acts, 1963 to 1986, which applies (otherwise than by virtue of paragraph 47 of this Schedule and subparagraph (1) of this paragraph) to group accounts.

• (a) sections 191 and 192 of the Principal Act, and

• (b) paragraphs (iii) and (iv) of section 16 (1) of this Act.

• (2) In this paragraph, references to the group, in relation to consolidated accounts prepared by a holding company, are references to the holding company and the subsidiaries dealt with by the accounts.

Group accounts not prepared as consolidated accounts

Provisions of general application

• (a) does not prepare group accounts, or

• (b) prepares group accounts which do not deal with one or more of its subsidiaries,

and references in this paragraph to subsidiaries shall be read in a case within clause (b) of this subparagraph as references to such of the subsidiaries of the company concerned as are excluded from the group accounts.

• (2) Subject to the following provisions of this paragraph—

• (a) the reasons why subsidiaries are not dealt with in group accounts, and

• (b) a statement showing any qualifications contained in the reports of the auditors of the subsidiaries on their accounts for their respective financial years ending with or during the financial year of the company, and any note or saving contained in those accounts to call attention to a matter which, apart from the note or saving, would properly have been referred to in such a qualification, insofar as the matter which is the subject of the qualification or note is not covered by the company's own accounts and is material from the point of view of its members.

shall be given in a note to the company's accounts.

• (3) Subject to the following provisions of this paragraph, the aggregate amount of the total investment of the holding company in the shares of subsidiaries shall be stated in note to company's accounts by way of the equity method of valuation.

• (4) Insofar as information required by any of the preceding provisions of this paragraph to be stated in a note to the company's accounts is not obtainable, a statement to that effect shall be given instead in a note to those accounts.

• (5) Where in any case within subparagraph (1) (b) of this paragraph the group accounts are consolidated accounts, references in the preceding subparagraphs of this paragraph to the company's accounts shall be read as references to the consolidated accounts.

• (a) the reasons why the company' directors consider that the subsidiaries' financial years should not end with that of the company, and

• (b) the dates on which the subsidiaries financial years ending last before that of the company respectively ended or the earliest and latest of those dates.

Part VI

SPECIAL PROVISIONS WHERE A COMPANY IS AN INVESTMENT COMPANY

• (2) Any provisions made by virtue of subparagraph (1) or (2) of paragraph 7 of this Schedule in the case of an investment company in respect of any fixed asset investments need not be charged to the company's profit and loss account if they are either—

• (a) charged against any reserve account to which any amount excluded by subparagraph (1) of this paragraph from the requirements of the said paragraph 22 has been credited, or

• (b) shown as a separate item in the company's balance sheet under the sub-heading “other reserves”.

• (3) For the purposes of this paragraph as it applies in relation to any company, “fixed asset investment” means any asset falling to be included under any item shown in the company' balance sheet under the subdivision “financial assets” under the general item “fixed assets”.

• (a) during the whole of that year, it was an investment company within the meaning of Part IV of the Act of 1983,

• (b) it was not at any time during that year prohibited by section 47 of that Act from making a distribution.

• (a) as they apply to the separate accounts of that company, and

• (b) as they apply otherwise than by virtue of paragraphs 47 and 48 of this Schedule to any group accounts prepared by that company.

Part VII

INTERPRETATION OF SCHEDULE

Assets: fixed or current

Balance sheet date

Capitalisation

Fellow subsidiary

Group companies

Historical cost accounting rules

Listed investments

Loans

Materiality

Provisions

• (2) Any reference in the profit and loss account formats set out in Part I of this Schedule to the depreciation of, or amounts written off, assets of any description is a reference to any provision for depreciation or diminution in value of assets of that description.

Purchase price

Realised profits

• (a) the construction of any other expression by reference (where appropriate) to accepted accounting principles or practice, or

• (b) any specific provision for the treatment of profits of any description as realised,

it is hereby declared for the avoidance of doubt that references in this Schedule to realised profits, in relation to a company's accounts, are references to such profits of the company as fall to be treated as realised profits for the purposes of those accounts in accordance with principles generally accepted with respect to the determination for accounting purposes of realised profits at the time when those accounts are prepared.

Related companies

• (2) In this paragraph—

“qualifying capital interest” in relation to any body corporate, means an interest in shares comprised in the equity share capital of that body corporate of a class carrying rights to vote in all circumstances at general meetings of that body corporate;

“equity share capital” has the meaning assigned to it by section 155 (5) of the Principal Act.

• (3) Where—

• (a) a company holds a qualifying capital interest in a body corporate, and

• (b) the nominal value of any such shares in that body corporate held by that company as are mentioned in subparagraph (2) of this paragraph is equal to twenty per cent. or more of the nominal value of all such shares in that body corporate as are mentioned in subparagraph (2) of this paragraph,

it shall be presumed to hold that interest on the basis and for the purpose mentioned in subparagraph (1) of this paragraph unless the contrary is shown.

Staff costs

“social welfare costs” means any contribution by a company to any state social welfare, social security or pension scheme, fund or arrangement, being a fund or arrangement connected with such a scheme, and “social welfare” means any such scheme fund or arrangement;

“pension costs” include any other contributions by a company for the purposes of any pension scheme established for the purpose of providing pensions for persons employed by the company, any sums set aside for that purpose and any amounts paid by the company in respect of pensions without first being so set aside;

and any amount stated in respect of either of the above items or in respect of the item “wages and salaries” in a company's profit and loss account shall be determined by reference to payments made or costs incurred in respect of all persons employed by the company during the financial year concerned who are taken into account in determining the relevant annual number for the purposes of paragraph 42 (1) (a) of this Schedule.

Turnover

• (a) trade discounts,

• (b) value-added tax, and

• (c) any other taxes based on the amounts so derived.

Wholly-owned Subsidiaries

Footnotes