Legalize / United Kingdom / Public General Act

Companies Act 1985

Type Public General Act

Publication 1985-03-11

Last updated 2026-04-07

State In force

Department Statute Law Database

Source legislation.gov.uk

articles Not indexed

Reform history JSON API

Undertakings to be included in consolidation

General application of provisions applicable to individual accounts

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Foreign currency translation

Additional items

Managed funds

Deferred acquisition costs

Substitution of original amount where price or cost unknown

Technical provisions

Provision for unexpired risks

Provision for unearned premiums

Long term business provision

Excess of money owed over value received as an asset item

Determination of cost

Disclosure of accounting policies

Sums denominated in foreign currencies

Long term business provision

Information about fair value of assets and liabilities

Details of indebtedness

Equalisation reserves

Accounting on a non-annual basis

Disclosure of accounting policies

Reserves and dividends

Staff costs

Particulars of tax

Particulars of business

Details of indebtedness

Scope of Part and Interpretation

General

Commissions

Particulars of tax

Provisions

Commissions

Particulars of staff

Miscellaneous matters

General

Materiality

Provisions

Staff costs

Northern Ireland

Duty to register

(Scotland Only)

Scope of Part and Interpretation

Scope of Part

Preparation of accounts and reports

Note:. . .

The number of shares issued is

Relief from section 56 in respect of group reconstructions.

Particulars of directors to be registered under s. 288.

Duty to deliver annual returns.

Charges which have to be registered.

Subsidiary undertakings included in the consolidation.

Direction to terminate investigation

Information provided: evidence

Protection in relation to certain disclosures: information provided to Secretary of State

Companies capable of being registered under this Chapter.

Scope of Chapter.

Aggregate amount of directors’ emoluments etc.

The reporting accountant

Companies’ registered numbers.

Membership of certain undertakings

Information about fair value of assets and liabilities

Financial instruments

Pensions

LIABILITIES

Share capital and debentures

General

Fixed cumulative dividends

Disclosure of accounting policies

Format 1

General application of provisions applicable to individual accounts

LIABILITIES

Format 1

Subordinated assets

Provision for taxation

Undertakings to be included in consolidation

General application of provisions applicable to individual accounts

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Additional items

Managed funds

Deferred acquisition costs

Provision for unearned premiums

Provision for unexpired risks

Provision for unearned premiums

Long term business provision

General business

General

Determination of cost

Disclosure of accounting policies

Investments

Provision for taxation

Guarantees and other financial commitments

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Disclosure of accounting policies

Sums denominated in foreign currencies

Reserves and dividends

Materiality

Particulars of tax

Information about fair value of assets and liabilities

Details of indebtedness

Duty to deliver copies in Great Britain

Separate statement of certain items of income and expenditure

Particulars of tax

Materiality

Commissions

Particulars of staff

Miscellaneous matters

General

Financial instruments

Provisions

Scots land tenure

Staff costs

Northern Ireland

Meeting of transferee company

Any part of Her Majesty’s dominions outside the United Kingdom, the Channel Islands or the Isle of Man

Duty to register

Scope of Part and Interpretation

Duty to deliver copies in Great Britain

Preparation of accounts and reports

Duty to deliver copies in Great Britain

*The share capital of the company is , divided into shares of each.

Relief from section 56 in respect of group reconstructions.

Treasury shares: maximum holdings

Procedure for special resolution under s. 173.

Special provisions for banking and insurance groups.

Contents of annual return: general.

Charges which have to be registered.

Right of offeror to buy out minority shareholders.

Alteration of floating charges.

Provision and authentication by registrar of documents in non-legible form.

Prohibition of partnerships with more than 20 members.

Companies’ registered numbers.

Excess retirement benefits of directors and past directors

Special provisions for banking and insurance companies.

Membership of certain undertakings

Policy and practice on payment of creditors

Long term incentive schemes

Reserves and dividends

ASSETS

Provision for taxation

Participating interests.

Index of defined expressions.

Relaxation and removal of restrictions.

Prohibition of partnerships with more than 20 members.

Excess retirement benefits of directors and past directors

Policy and practice on payment of creditors

Share capital and debentures

Disclosure of accounting policies

Format 2

Information as to undertaking in which shares held as a result of financial assistance operation

Substitution of original amount where price or cost unknown

Maturity analysis

Financial instruments

Loans

General application of provisions applicable to individual accounts

Minority interests and associated undertakings

Foreign currency translation

Long term business

Deferred acquisition costs

Provision for unearned premiums

Inclusion of financial instruments at fair value

Determination of fair value

Long term business provision

Goodwill

Equalisation reserves

Accounting on a non-annual basis

Scots land tenure

Staff costs

Technical provisions

Long term business

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Disclosure of accounting policies

Reserves and dividends

Staff costs

Separate statement of certain items of income and expenditure

Provision for taxation

Duty to register

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Commissions

Particulars of tax

Materiality

Commissions

Particulars of staff

Miscellaneous matters

Financial instruments

Materiality

Scots land tenure

Staff costs

(Scotland Only)

Meeting of transferee company

(Scotland Only)

Duty to register

Investment property

Format 2

Disclosure of accounting policies

Foreign currency translation

Undertakings to be included in consolidation

General application of provisions applicable to individual accounts

Minority interests and associated undertakings

Information as to undertaking in which shares held as a result of financial assistance operation

Equalisation reserves

Managed funds

Deferred acquisition costs

Valuation

Provision for unearned premiums

General rules

General business

Accounting on a non-annual basis

Meeting of transferee company

Details of indebtedness

Equalisation reserves

Accounting on a non-annual basis

Disclosure of accounting policies

Sums denominated in foreign currencies

Guarantees and other financial commitments

Investments

Information where investment property and living animals and plants included at fair value

Details of indebtedness

Scope of Part and Interpretation

Miscellaneous matters

Separate statement of certain items of income and expenditure

Staff costs

Provisions

Commissions

Particulars of staff

Miscellaneous matters

General

Loans

Provisions

Scots land tenure

Draft terms of merger

(Scotland Only)

Note:. . .

Relief from section 56 in respect of group reconstructions.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Statement of company’s policy on directors’ remuneration

Pensions

Subordinated assets

Undertakings to be included in consolidation

Notes to the accounts.

Obstruction of inspectors treated as contempt of court.

Particulars to be delivered to the registrar: winding up.

Registration offices.

Provision and authentication by registrar of documents in non-legible form.

Information about fair value of assets and liabilities

Format 1

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Subordinated liabilities

Syndicated loans

Format 1

Minority interests and associated undertakings

Reserves and dividends

Foreign currency translation

Financial instruments

General application of provisions applicable to individual accounts

Minority interests and associated undertakings

Foreign currency translation

Additional items

Managed funds

Deferred acquisition costs

Technical provisions

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Particulars of business

Technical provisions

Provision for unexpired risks

Excess of money owed over value received as an asset item

Assets included at a fixed amount

Substitution of original amount where price or cost unknown

General business

Long term business

Accounting on a non-annual basis

Disclosure of accounting policies

Sums denominated in foreign currencies

Scots land tenure

Separate statement of certain items of income and expenditure

Particulars of tax

Particulars of business

Particulars required

Preparation of accounts and reports

General

Particulars of tax

Particulars of business

Commissions

Particulars of staff

Miscellaneous matters

Financial instruments

Scots land tenure

Northern Ireland

Meeting of transferee company

*The share capital of the company is , divided into shares of each.

Note:. . .

Relief from section 56 in respect of group reconstructions.

Procedure for special resolution under s. 173.

Obligation of disclosure arising under s. 204.

Accounting standards.

Contents of annual return: general.

Obstruction of inspectors treated as contempt of court.

Obtaining information from former inspectors etc

Particulars to be delivered to the registrar: winding up.

Service contracts

Reporting standards

Pensions

Information about fair value of assets and liabilities

Subordinated assets

Index of defined expressions.

Director’s contract of employment for more than 5 years.

Contents of annual return: general.

Certain charges void if not registered.

Charges which have to be registered.

Information as to compromise to be circulated.

Production of documents and evidence to inspectors.

Direction to terminate investigation

Alteration of floating charges.

Effect of floating charge on winding up.

Power of court to declare dissolution of company void.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Procedural requirements for registration.

Preliminary

Policy and practice on payment of creditors

5A

(1) In relation to the use of financial instruments by a company . . . , the directors' report must contain an indication of –

(a) the financial risk management objectives and policies of the company . . . , including the policy for hedging each major type of forecasted transaction for which hedge accounting is used, and

(b) the exposure of the company . . . to price risk, credit risk, liquidity risk and cash flow risk,

unless such information is not material for the assessment of the assets, liabilities, financial position and profit or loss of the company . . . .

(1A) In relation to a group directors' report sub-paragraph (1) has effect as if the references to the company were references to the company and its subsidiary undertakings included in the consolidation.

(2) In sub-paragraph (1) the expressions “hedge accounting”, “price risk”, “credit risk”, “liquidity risk” and “cash flow risk” have the same meaning as they have in Council Directive 78/660/EEC on the annual accounts of certain types of companies, and in Council Directive 83/349/EEC on consolidated accounts, as amended.

5A

Format 1

LIABILITIES

1.Deposits by banks(11),(20)

Customer accounts(12) (20)

Dept securities in issue(13),(20)

Other liabilities

Accruals and deferred income

Provisions for liabilities

Subordinated(14),(20)

Called up sharer capital(15)

Share premium account

10.

Reserves

11.

Revaluation reserve

12.

Profit and loss account

Foreign currency translation

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

LIABILITIES

Managed funds

Additional items

Deferred acquisition costs

Valuation

Development costs

Determination of cost

Goodwill

Assets included at a fixed amount

Substitution of original amount where price or cost unknown

Technical provisions

Substitution of original amount where price or cost unknown

Commissions

Particulars of staff

Equalisation reserves

Materiality

Reserves and dividends

Investments

General

Provision for taxation

Details of indebtedness

Separate statement of certain items of income and expenditure

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Particulars of tax

Scope of Part and Interpretation

Commissions

Loans

Provisions

Materiality

Staff costs

Northern Ireland

Preparation of accounts and reports

Northern Ireland

Preparation of accounts and reports

Scope of Part

Scope of Part and Interpretation

Duty to deliver copies in Great Britain

Note:. . .

Relief from section 56 in respect of group reconstructions.

Amount of each director’s emoluments and compensation in the relevant financial year

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Index of defined expressions.

Introductory provisions.

Duty to deliver annual returns.

Charges which have to be registered.

Right of offeror to buy out minority shareholders.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Companies formed and registered under former Companies Acts.

Format I

Preliminary

Share capital and debentures

Loans

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Additional items

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Provision for unexpired risks

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Determination of fair value

Development costs

Goodwill

Excess of money owed over value received as an asset item

Assets included at a fixed amount

Determination of cost

Preliminary

Provision for unearned premiums

Technical provisions

Provision for unearned premiums

Long term business provision

Long term business

Disclosure of accounting policies

Reserves and dividends

Sums denominated in foreign currencies

Assets

General

Provision for taxation

Information about fair value of assets and liabilities

Provision for taxation

Separate statement of certain items of income and expenditure

Particulars of tax

Commissions

Particulars of staff

General

Materiality

Financial instruments

Relief from section 56 in respect of group reconstructions.

Staff costs

Scots land tenure

(Scotland Only)

Preparation of accounts and reports

(Scotland Only)

Preparation of accounts and reports

Scope of Part

Note:. . .

Relief from section 56 in respect of group reconstructions.

Assets

Financial instruments

Provision for taxation

Sums denominated in foreign currencies

Assets

Information where investment property and living animals and plants included at fair value

Guarantees and other financial commitments

Miscellaneous matters

Separate statement of certain items of income and expenditure

Particulars of tax

General

Loans

Scots land tenure

Provisions

Any part of Her Majesty’s dominions outside the United Kingdom, the Channel Islands or the Isle of Man

Draft terms of merger

*The share capital of the company is , divided into shares of each.

Note:. . .

Aggregate amount of directors’ emoluments etc.

Policy and practice on payment of creditors

Minor definitions.

Index of defined expressions.

“Relevant amounts” for purposes of ss. 334 ff.

Resignation and revocation of appointment

Preliminary

Format 1

Share capital and debentures

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

General business

Development costs

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Development costs

Goodwill

Preliminary

Technical provisions

Accounting on a non-annual basis

Equalisation reserves

Disclosure of accounting policies

Reserves and dividends

Assets

Details of indebtedness

Separate statement of certain items of income and expenditure

Particulars of business

Commissions

Particulars of staff

Scots land tenure

Staff costs

Note:. . .

Scope of Part

Note:. . .

1

. On indictment

2

Summary

Relief from section 56 in respect of group reconstructions.

Consideration by the directors of matters relating to directors’ remuneration

Financial instruments

Information about fair value of assets and liabilities

Charges which have to be registered.

Preliminary

Undertakings to be included in consolidation

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Substitution of original amount where price or cost unknown

Technical provisions

Deferred acquisition costs

Valuation

Inclusion of financial instruments at fair value

Goodwill

Assets included at a fixed amount

Determination of cost

Technical provisions

Provision for unexpired risks

Details of indebtedness

Sums denominated in foreign currencies

Reserves and dividends

Investments

Guarantees and other financial commitments

Separate statement of certain items of income and expenditure

Particulars of tax

Commissions

Loans

Materiality

Financial instruments

Staff costs

(Scotland Only)

Duty to deliver copies in Great Britain

Northern Ireland

Duty to deliver copies in Great Britain

Scope of Part and Interpretation

*The share capital of the company is , divided into shares of each.

Relief from section 56 in respect of group reconstructions.

Execution of deeds: England and Wales

Conditions for payment out of capital.

Obligation of disclosure arising under s. 204.

Companies formed and registered under former Companies Acts.

Right of shareholder to require laying of accounts.

Disclosure of accounting policies

Index of defined expressions.

A. Called up share capital not paid (1)

Share capital and debentures

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Deferred acquisition costs

Goodwill

Inclusion of financial instruments at fair value

Development costs

Excess of money owed over value received as an asset item

Particulars of tax

Substitution of original amount where price or cost unknown

Long term business

Sums denominated in foreign currencies

Reserves and dividends

Assets

Provision for taxation

Details of indebtedness

Guarantees and other financial commitments

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Separate statement of certain items of income and expenditure

Particulars of tax

Relief from section 56 in respect of group reconstructions.

General

Scots land tenure

Staff costs

Meeting of transferee company

(Scotland Only)

*The share capital of the company is , divided into shares of each.

Relief from section 56 in respect of group reconstructions.

Provision for taxation

Assets

Investments

Materiality

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Particulars of tax

Duty to register

Particulars of staff

Northern Ireland

Particulars required

Obligation of disclosure arising under s. 204.

Notes to the accounts.

Policy and practice on payment of creditors

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Valuation

Deferred acquisition costs

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Determination of fair value

Development costs

Goodwill

Excess of money owed over value received as an asset item

Determination of cost

General business

Long term business

Equalisation reserves

Provisions

Information where investment property and living animals and plants included at fair value

Details of indebtedness

Assets

General

Information where investment property and living animals and plants included at fair value

Loans

Miscellaneous matters

Particulars of tax

Commissions

Miscellaneous matters

General

Loans

Any part of Her Majesty’s dominions outside the United Kingdom, the Channel Islands or the Isle of Man

Draft terms of merger

(Scotland Only)

Note:. . .

Relief from section 56 in respect of group reconstructions.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Additional items

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Determination of fair value

Determination of cost

Substitution of original amount where price or cost unknown

Preliminary

Provision for unearned premiums

Long term business

Equalisation reserves

Disclosure of accounting policies

Assets

General

Guarantees and other financial commitments

Miscellaneous matters

Particulars of tax

Particulars of business

Commissions

Miscellaneous matters

Loans

Any part of Her Majesty’s dominions outside the United Kingdom, the Channel Islands or the Isle of Man

Draft terms of merger

(Scotland Only)

Particulars required

The number of shares issued is

Relief from section 56 in respect of group reconstructions.

A. Called up share capital not paid (1)

Format 2

Managed funds

Deferred acquisition costs

Determination of fair value

Disclosure of accounting policies

Reserves and dividends

Sums denominated in foreign currencies

Long term business provision

Equalisation reserves

Particulars of tax

Information where investment property and living animals and plants included at fair value

Details of indebtedness

Provision for taxation

Details of indebtedness

Loans

Scope of Part

Materiality

Provisions

Staff costs

Any part of Her Majesty’s dominions outside the United Kingdom, the Channel Islands or the Isle of Man

Duty to deliver copies in Great Britain

(Scotland Only)

Preparation of accounts and reports

Duty to deliver copies in Great Britain

Preparation of accounts and reports

The number of shares issued is

Note:. . .

Relief from section 56 in respect of group reconstructions.

Note:. . .

Relief from section 56 in respect of group reconstructions.

Index of defined expressions.

Restriction on distribution of assets.

Particulars of directors to be registered under s. 288.

Director’s contract of employment for more than 5 years.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Preliminary

Format 2

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Additional items

Managed funds

Deferred acquisition costs

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Long term business

Development costs

Goodwill

Sums denominated in foreign currencies

Determination of cost

Provision for unexpired risks

General business

Equalisation reserves

Assets

Investments

Information where investment property and living animals and plants included at fair value

Commissions

Provisions

Duty to deliver copies in Great Britain

Provisions

Scots land tenure

(Scotland Only)

Particulars required

(Scotland Only)

Duty to deliver copies in Great Britain

The number of shares issued is

Note:. . .

Relief from section 56 in respect of group reconstructions.

A. Called up share capital not paid (1)

Format 2

Share capital and debentures

Additional items

Deferred acquisition costs

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Determination of fair value

Development costs

Excess of money owed over value received as an asset item

Assets included at a fixed amount

Assets

Commissions

Miscellaneous matters

Particulars of business

Duty to deliver copies in Great Britain

Any part of Her Majesty’s dominions outside the United Kingdom, the Channel Islands or the Isle of Man

Draft terms of merger

(Scotland Only)

Duty to deliver copies in Great Britain

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Note:. . .

Relief from section 56 in respect of group reconstructions.

Format 2

Format 2

Share capital and debentures

Additional items

Deferred acquisition costs

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Determination of fair value

Goodwill

Excess of money owed over value received as an asset item

Long term business provision

General business

Assets

Materiality

Particulars of business

Preparation of accounts and reports

Scots land tenure

Staff costs

Any part of Her Majesty’s dominions outside the United Kingdom, the Channel Islands or the Isle of Man

Draft terms of merger

Particulars required

Preparation of accounts and reports

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Note:. . .

Relief from section 56 in respect of group reconstructions.

Draft terms of merger

(Scotland Only)

Particulars required

Duty to deliver copies in Great Britain

Note:. . .

Relief from section 56 in respect of group reconstructions.

Index of defined expressions.

Execution of documents by companies.

Cases in which special provisions do not apply

Format I

Preliminary

PART I — EXEMPTIONS WITH RESPECT TO PREPARATION OF ANNUAL ACCOUNTS OF SMALL COMPANIES

PART II — EXEMPTIONS WITH RESPECT TO DIRECTORS’ REPORT

PART III — EXEMPTIONS WITH RESPECT TO DELIVERY OF ACCOUNTS

Section C — Supplementary Provisions

Other companies exempt from audit

25A

Paragraph 24 above does not apply where the company is exempt by virtue of section 249A (certain categories of small companies) from the obligation to appoint auditors.

PART I — GENERAL RULES AND FORMATS

Format 1

A

Called up share capital not paid(1)

C

Current assets

(I) Stocks

(1) Stocks

(2) Payments on account

(II) Debtors(5)

(1) Trade debtors

(2) Amounts owed by group undertakings and undertakings in which the company has a participating interest

(3) Other debtors

(III) Investments

(1) Shares in group undertakings

(2) Other investments

(IV) Cash at bank and in hand

D

Prepayments and accrued income(6)

A

Called up share capital not paid(1)

C

Current assets

(I) Stocks

(1) Stocks

(2) Payments on account

(II) Debtors(5)

(1) Trade debtors

(2) Amounts owed by group undertakings and undertakings in which the company has a participating interest

(3) Other debtors

(III) Investments

(1) Shares in group undertakings

(2) Other investments

(IV) Cash at bank and in hand

D

Prepayments and accrued income(6)

A

Capital and reserves

(I) Called up share capital(9)

(II) Share premium account

(III) Revaluation reserve

(IV) Other reserves

(V) Profit and loss account

B

Provisions for liabilities

C

Creditors(10)

(1) Bank loans and overdrafts

(2) Trade creditors

(3) Amounts owed to group undertakings and undertakings in which the company has a participating interest

(4) Other creditors(7)

D

Accruals and deferred income(7)

A. Charges

Cost of sales(11)

Distribution costs(11)

Administrative expenses(11)

Amounts written off investments

Interest payable and similar charges(13)

Tax on profit or loss on ordinary activities

Profit or loss on ordinary activities after taxation

Extraordinary charges

Tax on extraordinary profit or loss

10.

Other taxes not shown under the above items

11.

Profit or loss for the financial year

B. Income

Turnover

Other operating income

Income from shares in group undertakings

Income from participating interests

Income from other fixed asset investments(12)

Other interest receivable and similar income(12)

Profit or loss on ordinary activities after taxation

Extraordinary income

Profit or loss for the financial year

A. Charges

Reduction in stocks of finished goods and in work in progress

Staff costs:

Other operating charges

Amounts written off investments

Interest payable and similar charges(13)

Tax on profit or loss on ordinary activities

Profit or loss on ordinary activities after taxation

10.

Extraordinary charges

11.

Tax on extraordinary profit or loss

12.

Other taxes not shown under the above items

13.

Profit or loss for the financial year

B. Income

Turnover

Increase in stocks of finished goods and in work in progress

Own work capitalised

Other operating income

Income from shares in group undertakings

Income from participating interests

Income from other fixed asset investments(12)

Other interest receivable and similar income(12)

Profit or loss on ordinary activities after taxation

10.

Extraordinary income

11.

Profit or loss for the financial year

PART II — ACCOUNTING PRINCIPLES AND RULES

PART III — NOTES TO THE ACCOUNTS

Share capital and debentures

Financial fixed assets

B

Provisions for liabilities

Share capital and debentures

Part I — Form and Content of Accounts

Supplementary provisions

18A

(1) Accounting policies shall be applied consistently within the same accounts and from one financial year to the next.

(2) If it appears to the directors of a company that there are special reasons for departing from the principle stated in sub-paragraph (1) in preparing the company’s accounts in respect of any financial year, they may do so; but particulars of the departure, the reasons for it and its effect shall be given in a note to the accounts.

18B

It shall be stated whether the accounts have been prepared in accordance with applicable accounting standards, and particulars of any material departure from those standards and the reasons for it shall be given.

18C

(1) In respect of every item shown in the balance sheet or profit and loss account, or stated in a note to the accounts, there shall be shown or stated the corresponding amount for the financial year immediately preceding that to which the accounts relate, subject to sub-paragraph (3).

(2) Where the corresponding amount is not comparable, it shall be adjusted and particulars of the adjustment and the reasons for it shall be given in a note to the accounts.

(3) Sub-paragraph (1) does not apply in relation to an amount shown—

(a) as an amount the source or application of which is required by paragraph 8 above (reserves and provisions),

(b) in pursuance of paragraph 13(10) above (acquisitions and disposals of fixed assets),

(d) by virtue of paragraph 2, 8(3), 16, 21(1)(d), 22(4) or (5), 24(3) or (4) or 27(3) or (4) of Schedule 5 (shareholdings in other undertakings), or

(e) by virtue of Part II or III of Schedule 6 (loans and other dealings in favour of directors and others).

Part II — Accounts of Banking or Insurance Group

PART I — INDIVIDUAL ACCOUNTS

Loans

PART II — CONSOLIDATED ACCOUNTS

Valuation

Inclusion of financial instruments at fair value

Assets included at a fixed amount

Determination of cost

Provision for unearned premiums

Long term business provision

Disclosure of accounting policies

Sums denominated in foreign currencies

Reserves and dividends

Substitution of original amount where price or cost unknown

Information about fair value of assets and liabilities

Provision for taxation

Details of indebtedness

Guarantees and other financial commitments

Northern Ireland

(Scotland Only)

Information where investment property and living animals and plants included at fair value

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Note:. . .

Relief from section 56 in respect of group reconstructions.

Format 2

Share capital and debentures

5

(1) Subject to the following provisions of this paragraph and without prejudice to note (6) to the balance sheet format, amounts in respect of items representing assets or income may not be set off against amounts in respect of items representing liabilities or expenditure (as the case may be), or vice versa.

(2) Charges required to be included in profit and loss account format 1, items 11(a) and 11(b) or format 2, items A7(a) and A7(b) may however be set off against income required to be included in format 1, items 12(a) and 12(b) or format 2, items B5(a) and B5(b) and the resulting figure shown as a single item (in format 2 at position A7 if negative and at position B5 if positive).

(3) Charges required to be included in profit and loss account format 1, item 13 or format 2, item A8 may also be set off against income required to be included in format 1, item 14 or format 2, item B6 and the resulting figure shown as a single item (in format 2 at position A8 if negative and at position B6 if positive).

6

(1) Assets shall be shown under the relevant balance sheet headings even where the company has pledged them as security for its own liabilities or for those of third parties or has otherwise assigned them as security to third parties.

(2) A company shall not include in its balance sheet assets pledged or otherwise assigned to it as security unless such assets are in the form of cash in the hands of the company.

Subordinated liabilities

Notes on the balance sheet format and memorandum items

Syndicated loans

Vertical layout

1.Interest receivable(1)

Interest payable(2)

Dividend income

Fees and commissions receivable(3)

Fees and commissions payable(4)

Dealing [profits][losses](5)

Other operating income

8.Administrative expenses

Depreciation and amortisation(6)

10.

Other operating charges

11.

Provisions

12.

Adjustments to provisions

13.

Amounts written off fixed asset investments(11)

14.

Adjustments to amounts written off fixed asset investments(12)

15.[Profit] [loss] on ordinary activities before tax

16.

Tax on [profit] [loss] on ordinary activities

17 [Profit] [loss] on ordinary activities after tax

18 Extraordinary income

19.

Extraordinary charges

20.

Extraordinary [profit] [loss]

21.Tax on extraordinary [profit] [loss]

22.

Extraordinary [profit] [loss] after tax

23 Other taxes not shown under the preceding items

24.

[Profit] [loss] for the financial yearSchedule 1Part I

Horizontal layout

Interest payable(2 )

2.. Fees and commissions payable(4)

Dealing losses(5)

Administrative expenses

Depreciation and amortisation(6)

Other oopserating charges

Provisions

Amounts written off fixed asset investments(11)

Profit on ordinary activities before tax

10.

Tax on [profit] [loss] on ordinary activities

11.Profit on ordinary activities after tax

12.

Extraordinary charges

13.

Tax on extraordinary [profit] [loss]

14.

xtraordinary loss after tax

15.

Other taxes not shown under the preceding items

16.

Profit for the financial year

Undertakings to be included in consolidation

Maturity analysis

Loans

Foreign currency translation

1

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

5

Any difference between:

(a) the amount included in the consolidated accounts for the previous financial year with respect to any undertaking included in the consolidation or the group’s interest in any associated undertaking, together with the amount of any transactions undertaken to cover any such interest; and

(b) the opening amount for the financial year in respect of those undertakings and in respect of any such transactions

6

Any income and expenditure of undertakings included in the consolidation and associated undertakings in a foreign currency may be translated for the purposes of the consolidated accounts at the average rates of exchange prevailing during the financial year.

Additional items

Deferred acquisition costs

Excess of money owed over value received as an asset item

Assets included at a fixed amount

Determination of cost

Long term business provision

Provision for unexpired risks

Long term business provision

General business

Long term business

Accounting on a non-annual basis

Miscellaneous matters

Separate statement of certain items of income and expenditure

Particulars of business

Miscellaneous matters

Staff costs

1

(1) In its application to insurance groups, Schedule 4A shall have effect with the following modifications.

(2) In paragraph 1—

(a) for the reference in sub-paragraph (1) to the provisions of Schedule 4 there shall be substituted a reference to the provisions of Part I of this Schedule modified as mentioned in paragraph 2 below;

(b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(3) In paragraph 2(2)(a), for the words “three months” there shall be substituted the words “ six months ”.

(4) In paragraph 3, after sub-paragraph (1) there shall be inserted the following sub-paragraphs—

(1A) Sub-paragraph (1) shall not apply to those liabilities items the valuation of which by the undertakings included in a consolidation is based on the application of provisions applying only to insurance undertakings, nor to those assets items changes in the values of which also affect or establish policy holders’ rights. (1B) Where sub-paragraph (1A) applies, that fact shall be disclosed in the notes on the consolidated accounts.

(5) For sub-paragraph (4) of paragraph 6 there shall be substituted the following sub-paragraph—

(4) Sub-paragraphs (1) and (2) need not be complied with— (a) where a transaction has been concluded according to normal market conditions and a policy holder has rights in respect of that transaction, or (b) if the amounts concerned are not material for the purpose of giving a true and fair view. (5) Where advantage is taken of sub-paragraph (4)(a) above that fact shall be disclosed in the notes to the accounts, and where the transaction in question has a material effect on the assets, liabilities, financial position and profit or loss of all the undertakings included in the consolidation that fact shall also be so disclosed.

(6) In paragraph 17—

(a) in sub-paragraph (1), for the reference to Schedule 4 there shall be substituted a reference to Part I of this Schedule;

(b) in sub-paragraph (2), paragraph (a) and, in paragraph (b), the words “in Format 2” shall be omitted;

(c) in sub-paragraph (3), for paragraphs (a) to (d) there shall be substituted the words “between items 10 and 11 in section III”;

(d) in sub-paragraph (4), for paragraphs (a) to (d) there shall be substituted the words “between items 14 and 15 in section III”; and

(e) for sub-paragraph (5) there shall be substituted the following sub-paragraph—

(5) Paragraph 2(3) of Part I of Schedule 9A (power to combine items) shall not apply in relation to the additional items required by the foregoing provisions of this paragraph.

(7) In paragraph 18, for the reference to paragraphs 17 to 19 and 21 of Schedule 4 there shall be substituted a reference to paragraphs 31 to 33 and 36 of Part I of this Schedule.

(8) In paragraph 21—

(a) in sub-paragraph (1), for the reference to Schedule 4 there shall be substituted a reference to Part I of this Schedule; and

(b) for sub-paragraphs (2) and (3) there shall be substituted the following sub-paragraphs—

(2) In the Balance Sheet Format, Asset item C.II.3 (participating interests) shall be replaced by two items, “Interests in associated undertakings” and “Other participating interests”. (3) In the Profit and Loss Account Format, items II.2(a) and III.3(a) (income from participating interests, with a separate indication of that derived from group undertakings) shall each be replaced by the following items— (a) “Income from participating interests other than associated undertakings, with a separate indication of that derived from group undertakings”, which shall be shown as items II.2(a) and III.3(a), and (b) “Income from associated undertakings”, which shall be shown as items II.2(aa) and III.3(aa).

(9) In paragraph 22(1), for the reference to paragraphs 17 to 19 and 21 of Schedule 4 there shall be substituted a reference to paragraphs 31 to 33 and 36 of Part I of this Schedule.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(Scotland Only)

Particulars required

Preparation of accounts and reports

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Note:. . .

A. Called up share capital not paid (1)

Preliminary

Format 2

Format 2

Syndicated loans

Fixed cumulative dividends

Loans

Foreign currency translation

Additional items

Managed funds

Deferred acquisition costs

Determination of fair value

Goodwill

Determination of cost

Preliminary

Provision for unexpired risks

Long term business provision

General business

Long term business

Equalisation reserves

Accounting on a non-annual basis

Disclosure of accounting policies

Sums denominated in foreign currencies

Assets

Investments

Guarantees and other financial commitments

Separate statement of certain items of income and expenditure

Particulars of tax

Particulars of business

Commissions

Miscellaneous matters

Scots land tenure

Staff costs

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Particulars required

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Note:. . .

Where and for how long records to be kept.

Format I

Preliminary

Format 1

Share capital and debentures

Financial instruments

Additional items

Managed funds

Deferred acquisition costs

Valuation

Development costs

Excess of money owed over value received as an asset item

Assets included at a fixed amount

Substitution of original amount where price or cost unknown

Preliminary

Technical provisions

Long term business provision

General business

Equalisation reserves

Accounting on a non-annual basis

Disclosure of accounting policies

Sums denominated in foreign currencies

Reserves and dividends

Assets

Guarantees and other financial commitments

Particulars of tax

Particulars of business

Commissions

Particulars of staff

Financial instruments

Materiality

Provisions

Northern Ireland

Meeting of transferee company

(Scotland Only)

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

7A

The Prudential Regulation Authority.

7B

The Bank of England.

Format I

Preliminary

Format 1

Additional items

Managed funds

Inclusion of financial instruments at fair value

Development costs

Assets included at a fixed amount

Determination of cost

Preliminary

Long term business

Equalisation reserves

Assets

Guarantees and other financial commitments

Separate statement of certain items of income and expenditure

Particulars of tax

Particulars of business

Particulars of staff

Financial instruments

Scots land tenure

Northern Ireland

Meeting of transferee company

27A

A disclosure for the purpose of enabling or assisting the lead enforcement authority (as defined in section 33(1) of the Estate Agents Act 1979) to exercise its functions under the Estate Agents Act 1979.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

3A

The Commissioners for Her Majesty’s Revenue and Customs.

6A

The Director of the Serious Fraud Office.

7C

The registrar of companies.

7D

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

745A

In this Act references to the Bank of England do not include the Bank acting in its capacity as the Prudential Regulation Authority.

Relief from section 56 in respect of group reconstructions.

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