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The Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008

Type Statutory-Instrument

Publication 2008-02-19

Last updated 2026-01-01

State In force

Department King's Printer of Acts of Parliament

Source legislation.gov.uk

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Profit and loss account format	Profit and loss account format	Profit and loss account format	Profit and loss account format	Profit and loss account format	Profit and loss account format	Profit and loss account format	Profit and loss account format	Profit and loss account format

I.	Technical account — General business	Technical account — General business	Technical account — General business	Technical account — General business	Technical account — General business	Technical account — General business	Technical account — General business	Technical account — General business

			1.	Earned premiums, net of reinsurance	Earned premiums, net of reinsurance	Earned premiums, net of reinsurance	Earned premiums, net of reinsurance	Earned premiums, net of reinsurance
					(a)	gross premiums written (1)	gross premiums written (1)	gross premiums written (1)
					(b)	outward reinsurance premiums (2)	outward reinsurance premiums (2)	outward reinsurance premiums (2)
					(c)	change in the gross provision for unearned premiums	change in the gross provision for unearned premiums	change in the gross provision for unearned premiums
					(d)	change in the provision for unearned premiums, reinsurers’ share	change in the provision for unearned premiums, reinsurers’ share	change in the provision for unearned premiums, reinsurers’ share

			2.	Allocated investment return transferred from the non-technical account (item III.6) (10)	Allocated investment return transferred from the non-technical account (item III.6) (10)	Allocated investment return transferred from the non-technical account (item III.6) (10)	Allocated investment return transferred from the non-technical account (item III.6) (10)	Allocated investment return transferred from the non-technical account (item III.6) (10)

			2a.	Investment income (8) (10)	Investment income (8) (10)	Investment income (8) (10)	Investment income (8) (10)	Investment income (8) (10)
					(a)	income from participating interests, with a separate indication of that derived from group undertakings	income from participating interests, with a separate indication of that derived from group undertakings	income from participating interests, with a separate indication of that derived from group undertakings
					(b)	income from other investments, with a separate indication of that derived from group undertakings	income from other investments, with a separate indication of that derived from group undertakings	income from other investments, with a separate indication of that derived from group undertakings
							(aa)	income from land and buildings
							(bb)	income from other investments
					(c)	value re-adjustments on investments	value re-adjustments on investments	value re-adjustments on investments
					(d)	gains on the realisation of investments	gains on the realisation of investments	gains on the realisation of investments

			3.	Other technical income, net of reinsurance	Other technical income, net of reinsurance	Other technical income, net of reinsurance	Other technical income, net of reinsurance	Other technical income, net of reinsurance

			4.	Claims incurred, net of reinsurance (4)	Claims incurred, net of reinsurance (4)	Claims incurred, net of reinsurance (4)	Claims incurred, net of reinsurance (4)	Claims incurred, net of reinsurance (4)
					(a)	claims paid	claims paid	claims paid
							(aa)	gross amount
							(bb)	reinsurers’ share
					(b)	change in the provision for claims	change in the provision for claims	change in the provision for claims
							(aa)	gross amount
							(bb)	reinsurers’ share

			5.	Changes in other technical provisions, net of reinsurance, not shown under other headings	Changes in other technical provisions, net of reinsurance, not shown under other headings	Changes in other technical provisions, net of reinsurance, not shown under other headings	Changes in other technical provisions, net of reinsurance, not shown under other headings	Changes in other technical provisions, net of reinsurance, not shown under other headings

			6.	Bonuses and rebates, net of reinsurance (5)	Bonuses and rebates, net of reinsurance (5)	Bonuses and rebates, net of reinsurance (5)	Bonuses and rebates, net of reinsurance (5)	Bonuses and rebates, net of reinsurance (5)

			7.	Net operating expenses	Net operating expenses	Net operating expenses	Net operating expenses	Net operating expenses
					(a)	acquisition costs (6)	acquisition costs (6)	acquisition costs (6)
					(b)	change in deferred acquisition costs	change in deferred acquisition costs	change in deferred acquisition costs
					(c)	administrative expenses (7)	administrative expenses (7)	administrative expenses (7)
					(d)	reinsurance commissions and profit participation	reinsurance commissions and profit participation	reinsurance commissions and profit participation

			8.	Other technical charges, net of reinsurance	Other technical charges, net of reinsurance	Other technical charges, net of reinsurance	Other technical charges, net of reinsurance	Other technical charges, net of reinsurance

			8a.	Investment expenses and charges (8)	Investment expenses and charges (8)	Investment expenses and charges (8)	Investment expenses and charges (8)	Investment expenses and charges (8)
					(a)	investment management expenses, including interest	investment management expenses, including interest	investment management expenses, including interest
					(b)	value adjustments on investments	value adjustments on investments	value adjustments on investments
					(c)	losses on the realisation of investments	losses on the realisation of investments	losses on the realisation of investments

			9.	Change in the equalisation provision	Change in the equalisation provision	Change in the equalisation provision	Change in the equalisation provision	Change in the equalisation provision

			10.	Sub-total (balance on the technical account for general business) (item III.1)	Sub-total (balance on the technical account for general business) (item III.1)	Sub-total (balance on the technical account for general business) (item III.1)	Sub-total (balance on the technical account for general business) (item III.1)	Sub-total (balance on the technical account for general business) (item III.1)

II.	Technical account — Long-term business	Technical account — Long-term business	Technical account — Long-term business	Technical account — Long-term business	Technical account — Long-term business	Technical account — Long-term business	Technical account — Long-term business	Technical account — Long-term business

			1.	Earned premiums, net of reinsurance	Earned premiums, net of reinsurance	Earned premiums, net of reinsurance	Earned premiums, net of reinsurance	Earned premiums, net of reinsurance
					(a)	gross premiums written (1)	gross premiums written (1)	gross premiums written (1)
					(b)	outward reinsurance premiums (2)	outward reinsurance premiums (2)	outward reinsurance premiums (2)
					(c)	change in the provision for unearned premiums, net of reinsurance (3)	change in the provision for unearned premiums, net of reinsurance (3)	change in the provision for unearned premiums, net of reinsurance (3)

			2.	Investment income (8) (10)	Investment income (8) (10)	Investment income (8) (10)	Investment income (8) (10)	Investment income (8) (10)
					(a)	income from participating interests, with a separate indication of that derived from group undertakings	income from participating interests, with a separate indication of that derived from group undertakings	income from participating interests, with a separate indication of that derived from group undertakings
					(b)	income from other investments, with a separate indication of that derived from group undertakings	income from other investments, with a separate indication of that derived from group undertakings	income from other investments, with a separate indication of that derived from group undertakings
							(aa)	income from land and buildings
							(bb)	income from other investments
					(c)	value re-adjustments on investments	value re-adjustments on investments	value re-adjustments on investments
					(d)	gains on the realisation of investments	gains on the realisation of investments	gains on the realisation of investments

			3.	Unrealised gains on investments (9)	Unrealised gains on investments (9)	Unrealised gains on investments (9)	Unrealised gains on investments (9)	Unrealised gains on investments (9)

			4.	Other technical income, net of reinsurance	Other technical income, net of reinsurance	Other technical income, net of reinsurance	Other technical income, net of reinsurance	Other technical income, net of reinsurance

			5.	Claims incurred, net of reinsurance (4)	Claims incurred, net of reinsurance (4)	Claims incurred, net of reinsurance (4)	Claims incurred, net of reinsurance (4)	Claims incurred, net of reinsurance (4)
					(a)	claims paid	claims paid	claims paid
							(aa)	gross amount
							(bb)	reinsurers’ share
					(b)	change in the provision for claims	change in the provision for claims	change in the provision for claims
							(aa)	gross amount
							(bb)	reinsurers’ share

			6.	Change in other technical provisions, net of reinsurance, not shown under other headings	Change in other technical provisions, net of reinsurance, not shown under other headings	Change in other technical provisions, net of reinsurance, not shown under other headings	Change in other technical provisions, net of reinsurance, not shown under other headings	Change in other technical provisions, net of reinsurance, not shown under other headings
					(a)	Long-term business provision, net of reinsurance (3)	Long-term business provision, net of reinsurance (3)	Long-term business provision, net of reinsurance (3)
							(aa)	gross amount
							(bb)	reinsurers’ share
					(b)	other technical provisions, net of reinsurance	other technical provisions, net of reinsurance	other technical provisions, net of reinsurance

			7.	Bonuses and rebates, net of reinsurance (5)	Bonuses and rebates, net of reinsurance (5)	Bonuses and rebates, net of reinsurance (5)	Bonuses and rebates, net of reinsurance (5)	Bonuses and rebates, net of reinsurance (5)

			8.	Net operating expenses	Net operating expenses	Net operating expenses	Net operating expenses	Net operating expenses
					(a)	acquisition costs (6)	acquisition costs (6)	acquisition costs (6)
					(b)	change in deferred acquisition costs	change in deferred acquisition costs	change in deferred acquisition costs
					(c)	administrative expenses (7)	administrative expenses (7)	administrative expenses (7)
					(d)	reinsurance commissions and profit participation	reinsurance commissions and profit participation	reinsurance commissions and profit participation

			9.	Investment expenses and charges (8)	Investment expenses and charges (8)	Investment expenses and charges (8)	Investment expenses and charges (8)	Investment expenses and charges (8)
					(a)	investment management expenses, including interest	investment management expenses, including interest	investment management expenses, including interest
					(b)	value adjustments on investments	value adjustments on investments	value adjustments on investments
					(c)	losses on the realisation of investments	losses on the realisation of investments	losses on the realisation of investments

			10.	Unrealised losses on investments (9)	Unrealised losses on investments (9)	Unrealised losses on investments (9)	Unrealised losses on investments (9)	Unrealised losses on investments (9)

			11.	Other technical charges, net of reinsurance	Other technical charges, net of reinsurance	Other technical charges, net of reinsurance	Other technical charges, net of reinsurance	Other technical charges, net of reinsurance

		11a.	11a.	Tax attributable to the long-term business	Tax attributable to the long-term business	Tax attributable to the long-term business	Tax attributable to the long-term business	Tax attributable to the long-term business

			12.	Allocated investment return transferred to the non-technical account (item III.4)	Allocated investment return transferred to the non-technical account (item III.4)	Allocated investment return transferred to the non-technical account (item III.4)	Allocated investment return transferred to the non-technical account (item III.4)	Allocated investment return transferred to the non-technical account (item III.4)

		12a.	12a.	Transfers to or from the fund for future appropriations	Transfers to or from the fund for future appropriations	Transfers to or from the fund for future appropriations	Transfers to or from the fund for future appropriations	Transfers to or from the fund for future appropriations

			13.	Sub-total (balance on the technical account — long-term business) (item III.2)	Sub-total (balance on the technical account — long-term business) (item III.2)	Sub-total (balance on the technical account — long-term business) (item III.2)	Sub-total (balance on the technical account — long-term business) (item III.2)	Sub-total (balance on the technical account — long-term business) (item III.2)

III.	Non-technical account	Non-technical account	Non-technical account	Non-technical account	Non-technical account	Non-technical account	Non-technical account	Non-technical account

			1.	Balance on the general business technical account (item I.10)	Balance on the general business technical account (item I.10)	Balance on the general business technical account (item I.10)	Balance on the general business technical account (item I.10)	Balance on the general business technical account (item I.10)

			2.	Balance on the long-term business technical account (item II.13)	Balance on the long-term business technical account (item II.13)	Balance on the long-term business technical account (item II.13)	Balance on the long-term business technical account (item II.13)	Balance on the long-term business technical account (item II.13)

			2a.	Tax credit attributable to balance on the long-term business technical account	Tax credit attributable to balance on the long-term business technical account	Tax credit attributable to balance on the long-term business technical account	Tax credit attributable to balance on the long-term business technical account	Tax credit attributable to balance on the long-term business technical account

			3.	Investment income (8)	Investment income (8)	Investment income (8)	Investment income (8)	Investment income (8)
					(a)	income from participating interests, with a separate indication of that derived from group undertakings	income from participating interests, with a separate indication of that derived from group undertakings	income from participating interests, with a separate indication of that derived from group undertakings
					(b)	income from other investments, with a separate indication of that derived from group undertakings	income from other investments, with a separate indication of that derived from group undertakings	income from other investments, with a separate indication of that derived from group undertakings
							(aa)	income from land and buildings
							(bb)	income from other investments
					(c)	value re-adjustments on investments	value re-adjustments on investments	value re-adjustments on investments
					(d)	gains on the realisation of investments	gains on the realisation of investments	gains on the realisation of investments

			3a.	Unrealised gains on investments (9)	Unrealised gains on investments (9)	Unrealised gains on investments (9)	Unrealised gains on investments (9)	Unrealised gains on investments (9)

			4.	Allocated investment return transferred from the long-term business technical account (item II.12) (10)	Allocated investment return transferred from the long-term business technical account (item II.12) (10)	Allocated investment return transferred from the long-term business technical account (item II.12) (10)	Allocated investment return transferred from the long-term business technical account (item II.12) (10)	Allocated investment return transferred from the long-term business technical account (item II.12) (10)

			5.	Investment expenses and charges (8)	Investment expenses and charges (8)	Investment expenses and charges (8)	Investment expenses and charges (8)	Investment expenses and charges (8)
					(a)	investment management expenses, including interest	investment management expenses, including interest	investment management expenses, including interest
					(b)	value adjustments on investments	value adjustments on investments	value adjustments on investments
					(c)	losses on the realisation of investments	losses on the realisation of investments	losses on the realisation of investments

			5a.	Unrealised losses on investments (9)	Unrealised losses on investments (9)	Unrealised losses on investments (9)	Unrealised losses on investments (9)	Unrealised losses on investments (9)

			6.	Allocated investment return transferred to the general business technical account (item I.2) (10)	Allocated investment return transferred to the general business technical account (item I.2) (10)	Allocated investment return transferred to the general business technical account (item I.2) (10)	Allocated investment return transferred to the general business technical account (item I.2) (10)	Allocated investment return transferred to the general business technical account (item I.2) (10)

			7.	Other income	Other income	Other income	Other income	Other income

			8.	Other charges, including value adjustments	Other charges, including value adjustments	Other charges, including value adjustments	Other charges, including value adjustments	Other charges, including value adjustments

			8a.	Profit or loss on ordinary activities before tax	Profit or loss on ordinary activities before tax	Profit or loss on ordinary activities before tax	Profit or loss on ordinary activities before tax	Profit or loss on ordinary activities before tax

			9.	Tax on profit or loss on ordinary activities	Tax on profit or loss on ordinary activities	Tax on profit or loss on ordinary activities	Tax on profit or loss on ordinary activities	Tax on profit or loss on ordinary activities

			10.	Profit or loss on ordinary activities after tax	Profit or loss on ordinary activities after tax	Profit or loss on ordinary activities after tax	Profit or loss on ordinary activities after tax	Profit or loss on ordinary activities after tax

			11.	Extraordinary income	Extraordinary income	Extraordinary income	Extraordinary income	Extraordinary income

			12.	Extraordinary charges	Extraordinary charges	Extraordinary charges	Extraordinary charges	Extraordinary charges

			13.	Extraordinary profit or loss	Extraordinary profit or loss	Extraordinary profit or loss	Extraordinary profit or loss	Extraordinary profit or loss

			14.	Tax on extraordinary profit or loss	Tax on extraordinary profit or loss	Tax on extraordinary profit or loss	Tax on extraordinary profit or loss	Tax on extraordinary profit or loss

			15.	Other taxes not shown under the preceding items	Other taxes not shown under the preceding items	Other taxes not shown under the preceding items	Other taxes not shown under the preceding items	Other taxes not shown under the preceding items

			16.	Profit or loss for the financial year	Profit or loss for the financial year	Profit or loss for the financial year	Profit or loss for the financial year	Profit or loss for the financial year

Notes on the profit and loss account format

(1)	Gross premiums written

(General business technical account: item I.1.(a).

PART 2 — ACCOUNTING PRINCIPLES AND RULES

SECTION A — ACCOUNTING PRINCIPLES

Preliminary

14

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.

15

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

16

The company is presumed to be carrying on business as a going concern.

17

Accounting policies must be applied consistently within the same accounts and from one financial year to the next.

18

The amount of any item must be determined on a prudent basis, and in particular—

(a) subject to note (9) on the profit and loss account format, only profits realised at the balance sheet date are to be included in the profit and loss account, and

(b) all liabilities which have arisen in respect of the financial year to which the accounts relate or a previous financial year must be taken into account, including those which only become apparent between the balance sheet date and the date on which it is signed on behalf of the board of directors in accordance with section 414 of the 2006 Act (approval and signing of accounts).

19

All income and charges relating to the financial year to which the accounts relate are to be taken into account, without regard to the date of receipt or payment.

20

In determining the aggregate amount of any item, the amount of each individual asset or liability that falls to be taken into account must be determined separately.

Valuation

21

(1) The amounts to be included in respect of assets of any description mentioned in paragraph 22 (valuation of assets: general) must be determined either—

(a) in accordance with that paragraph and paragraph 24 (but subject to paragraphs 27 to 29), or

(b) so far as applicable to an asset of that description, in accordance with Section C (valuation at fair value).

(2) The amounts to be included in respect of assets of any description mentioned in paragraph 24 (alternative valuation of fixed-income securities) may be determined—

(a) in accordance with that paragraph (but subject to paragraphs 27 to 29), or

(b) so far as applicable to an asset of that description, in accordance with Section C.

(3) The amounts to be included in respect of assets which—

(a) are not assets of a description mentioned in paragraph 22 or 23, but

(b) are assets of a description to which Section C is applicable,

may be determined in accordance with that Section.

(4) Subject to sub-paragraphs (1) to (3), the amounts to be included in respect of all items shown in a company’s accounts are determined in accordance with Section C.

SECTION B — CURRENT VALUE ACCOUNTING RULES

Valuation of assets: general

22

(1) Subject to paragraph 24, investments falling to be included under assets item C (investments) must be included at their current value calculated in accordance with paragraphs 25 and 26.

(2) Investments falling to be included under assets item D (assets held to cover linked liabilities) must be shown at their current value calculated in accordance with paragraphs 25 and 26.

23

(1) Intangible assets other than goodwill may be shown at their current cost.

(2) Assets falling to be included under assets items F.I (tangible assets) and F.IV (own shares) in the balance sheet format may be shown at their current value calculated in accordance with paragraphs 25 and 26 or at their current cost.

(3) Assets falling to be included under assets item F.II (stocks) may be shown at current cost.

Alternative valuation of fixed-income securities

24

(1) This paragraph applies to debt securities and other fixed-income securities shown as assets under assets items C.II (investments in group undertakings and participating interests) and C.III (other financial investments).

(2) Securities to which this paragraph applies may either be valued in accordance with paragraph 22 or their amortised value may be shown in the balance sheet, in which case the provisions of this paragraph apply.

(3) Subject to sub-paragraph (4), where the purchase price of securities to which this paragraph applies exceeds the amount repayable at maturity, the amount of the difference—

(a) must be charged to the profit and loss account, and

(b) must be shown separately in the balance sheet or in the notes to the accounts.

(4) The amount of the difference referred to in sub-paragraph (3) may be written off in instalments so that it is completely written off when the securities are repaid, in which case there must be shown separately in the balance sheet or in the notes to the accounts the difference between the purchase price (less the aggregate amount written off) and the amount repayable at maturity.

(5) Where the purchase price of securities to which this paragraph applies is less than the amount repayable at maturity, the amount of the difference must be released to income in instalments over the period remaining until repayment, in which case there must be shown separately in the balance sheet or in the notes to the accounts the difference between the purchase price (plus the aggregate amount released to income) and the amount repayable at maturity.

(6) Both the purchase price and the current value of securities valued in accordance with this paragraph must be disclosed in the notes to the accounts.

(7) Where securities to which this paragraph applies which are not valued in accordance with paragraph 22 are sold before maturity, and the proceeds are used to purchase other securities to which this paragraph applies, the difference between the proceeds of sale and their book value may be spread uniformly over the period remaining until the maturity of the original investment.

Meaning of “current value”

25

(1) Subject to sub-paragraph (5), in the case of investments other than land and buildings, current value means market value determined in accordance with this paragraph.

(2) In the case of listed investments, market value means the value on the balance sheet date or, when the balance sheet date is not a stock exchange trading day, on the last stock exchange trading day before that date.

(3) Where a market exists for unlisted investments, market value means the average price at which such investments were traded on the balance sheet date or, when the balance sheet date is not a trading day, on the last trading day before that date.

(4) Where, on the date on which the accounts are drawn up, listed or unlisted investments have been sold or are to be sold within the short term, the market value must be reduced by the actual or estimated realisation costs.

(5) Except where the equity method of accounting is applied, all investments other than those referred to in sub-paragraphs (2) and (3) must be valued on a basis which has prudent regard to the likely realisable value.

26

(1) In the case of land and buildings, current value means the market value on the date of valuation, where relevant reduced as provided in sub-paragraphs (4) and (5).

(2) Market value means the price at which land and buildings could be sold under private contract between a willing seller and an arm’s length buyer on the date of valuation, it being assumed that the property is publicly exposed to the market, that market conditions permit orderly disposal and that a normal period, having regard to the nature of the property, is available for the negotiation of the sale.

(3) The market value must be determined through the separate valuation of each land and buildings item, carried out at least every five years in accordance with generally recognised methods of valuation.

(4) Where the value of any land and buildings item has diminished since the preceding valuation under sub-paragraph (3), an appropriate value adjustment must be made.

(5) The lower value arrived at under sub-paragraph (4) must not be increased in subsequent balance sheets unless such increase results from a new determination of market value arrived at in accordance with sub-paragraphs (2) and (3).

(6) Where, on the date on which the accounts are drawn up, land and buildings have been sold or are to be sold within the short term, the value arrived at in accordance with sub-paragraphs (2) and (4) must be reduced by the actual or estimated realisation costs.

(7) Where it is impossible to determine the market value of a land and buildings item, the value arrived at on the basis of the principle of purchase price or production cost is deemed to be its current value.

Application of the depreciation rules

27

(1) Where—

(a) the value of any asset of a company is determined in accordance with paragraph 22 or 23, and

(b) in the case of a determination under paragraph 22, the asset falls to be included under assets item C.I,

that value must be, or (as the case may require) must be the starting point for determining, the amount to be included in respect of that asset in the company’s accounts, instead of its cost or any value previously so determined for that asset.

Paragraphs 36 to 41 and 43 apply accordingly in relation to any such asset with the substitution for any reference to its cost of a reference to the value most recently determined for that asset in accordance with paragraph 22 or 23 (as the case may be).

(2) The amount of any provision for depreciation required in the case of any asset by paragraph 37 or 38 as it applies by virtue of sub-paragraph (1) 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 sub-paragraph (1) applies in the case of any asset the amount of any provision for depreciation in respect of that asset included in any item shown in the profit and loss account in respect of amounts written off assets of the description in question may be the historical cost amount instead of the adjusted amount, provided that the amount of any difference between the two is shown separately in the profit and loss account or in a note to the accounts.

Additional information to be provided

28

(1) This paragraph applies where the amounts to be included in respect of assets covered by any items shown in a company’s accounts have been determined in accordance with paragraph 22 or 23.

(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 must be disclosed in a note to the accounts.

(3) The purchase price of investments valued in accordance with paragraph 22 must be disclosed in the notes to the accounts.

(4) In the case of each balance sheet item valued in accordance with paragraph 23 either—

(a) the comparable amounts determined according to the historical cost accounting rules (without any provision for depreciation or diminution in value), or

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

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

(5) In sub-paragraph (4), 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

29

(1) Subject to sub-paragraph (7) , with respect to any determination of the value of an asset of a company in accordance with paragraph 22 or 23, the amount of any profit or loss arising from that determination (after allowing, where appropriate, for any provisions for depreciation or diminution in value made otherwise than by reference to the value so determined and any adjustments of any such provisions made in the light of that determination) must be credited or (as the case may be) debited to a separate reserve (“the revaluation reserve”).

(2) The amount of the revaluation reserve must be shown in the company’s balance sheet under liabilities item A.III, but need not be shown under the name “revaluation reserve”.

(3) An amount may be transferred—

(a) from the revaluation reserve—

(i) to the profit and loss account, if the amount was previously charged to that account or represents realised profit, or

(ii) on capitalisation,

(b) to or from the revaluation reserve in respect of the taxation relating to any profit or loss credited or debited to the reserve.

The revaluation reserve must be reduced to the extent that the amounts transferred to it are no longer necessary for the purposes of the valuation method used.

(4) In sub-paragraph (3)(a)(ii) “capitalisation”, in relation to an amount standing to the credit of the revaluation reserve, means applying it in wholly or partly paying up unissued shares in the company to be allotted to members of the company as fully or partly paid shares.

(5) The revaluation reserve must not be reduced except as mentioned in this paragraph.

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

(7) This paragraph does not apply to the difference between the valuation of investments and their purchase price or previous valuation shown in the long-term business technical account or the non-technical account in accordance with note (9) on the profit and loss account format.

SECTION C — VALUATION AT FAIR VALUE

Inclusion of financial instruments at fair value

30

(1) Subject to sub-paragraphs (2) to (5), financial instruments (including derivatives) may be included at fair value.

(2) Sub-paragraph (1) does not apply to financial instruments that constitute liabilities unless—

(a) they are held as part of a trading portfolio,

(b) they are derivatives, or

(3) Except where they fall within paragraph (4), or fall to be included under assets item D (assets held to cover linked liabilities), sub-paragraph (1) does not apply to—

(a) financial instruments (other than derivatives) held to maturity,

(b) loans and receivables originated by the company and not held for trading purposes,

(d) equity instruments issued by the company,

(e) contracts for contingent consideration in a business combination, or

(f) other financial instruments with such special characteristics that the instruments, according to generally accepted accounting principles or practice, should be accounted for differently from other financial instruments.

(4) Financial instruments which under international accounting standards may be included in accounts at fair value, may be so included, provided that the disclosures required by such accounting standards are made.

(5) If the fair value of a financial instrument cannot be determined reliably in accordance with paragraph 31, sub-paragraph (1) does not apply to that financial instrument.

(6) In this paragraph—

“associated undertaking” has the meaning given by paragraph 19 of Schedule 6 to these Regulations; and

“joint venture” has the meaning given by paragraph 18 of that Schedule.

Determination of fair value

31

(1) The fair value of a financial instrument is its value determined in accordance with this paragraph.

(2) If a reliable market can readily be identified for the financial instrument, its fair value is determined by reference to its market value.

(3) If a reliable market cannot readily be identified for the financial instrument but can be identified for its components or for a similar instrument, its fair value is determined by reference to the market value of its components or of the similar instrument.

(4) If neither sub-paragraph (2) nor (3) applies, the fair value of the financial instrument is a value resulting from generally accepted valuation models and techniques.

(5) Any valuation models and techniques used for the purposes of sub-paragraph (4) must ensure a reasonable approximation of the market value.

Hedged items

32

A company may include any assets and liabilities, or identified portions of such assets or liabilities, that qualify as hedged items under a fair value hedge accounting system at the amount required under that system.

Other assets that may be included at fair value

33

(1) This paragraph applies to—

(a) investment property, and

(b) living animals and plants.

(2) Such investment property and living animals and plants may be included at fair value provided that, as the case may be, all such investment property or living animals and plants are so included where their fair value can be reliably determined.

(3) In this paragraph, “fair value” means fair value determined in accordance with generally accepted accounting principles or practice.

Accounting for changes in value

34

(1) This paragraph applies where a financial instrument is valued in accordance with paragraph 30 or 32 or an asset is valued in accordance with paragraph 33.

(2) Notwithstanding paragraph 18 in this Part of this Schedule, and subject to sub-paragraphs (3) and (4), a change in the value of the financial instrument or of the investment property or living animal or plant must be included in the profit and loss account.

(3) Where—

(a) the financial instrument accounted for is a hedging instrument under a hedge accounting system that allows some or all of the change in value not to be shown in the profit and loss account, or

(b) the change in value relates to an exchange difference arising on a monetary item that forms part of a company's net investment in a foreign entity,

the amount of the change in value must be credited to or (as the case may be) debited from a separate reserve (“the fair value reserve”).

(4) Where the instrument accounted for—

(a) is an available for sale financial asset, and

(b) is not a derivative,

the change in value may be credited to or (as the case may be) debited from the fair value reserve.

The fair value reserve

35

(1) The fair value reserve must be adjusted to the extent that the amounts shown in it are no longer necessary for the purposes of paragraph 34(3) or (4).

(2) The treatment for taxation purposes of amounts credited or debited to the fair value reserve must be disclosed in a note to the accounts.

SECTION D — HISTORICAL COST ACCOUNTING RULES

Valuation of assets

General rules

36

(1) The rules in this Section are “the historical cost accounting rules”.

(2) Subject to any provision for depreciation or diminution in value made in accordance with paragraph 37 or 38, the amount to be included in respect of any asset in the balance sheet format is its cost.

37

In the case of any asset included under assets item B (intangible assets), C.I (land and buildings), F.I (tangible assets) or F.II (stocks) which has a limited useful economic life, the amount of—

(a) its cost, or

(b) where it is estimated that any such asset will have a residual value at the end of the period of its useful economic life, its cost less that estimated residual value,

must be reduced by provisions for depreciation calculated to write off that amount systematically over the period of the asset's useful economic life.

38

(1) This paragraph applies to any asset included under assets item B (intangible assets), C (investments), F.I (tangible assets) or F.IV (own shares).

(2) Where an asset to which this paragraph applies has diminished in value, provisions for diminution in value may be made in respect of it and the amount to be included in respect of it may be reduced accordingly.

(3) Provisions for diminution in value must be made in respect of any asset to which this paragraph applies 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 must be reduced accordingly.

(4) Any provisions made under sub-paragraph (2) or (3) which are not shown in the profit and loss account must be disclosed (either separately or in aggregate) in a note to the accounts.

39

(1) Where the reasons for which any provision was made in accordance with paragraph 38 have ceased to apply to any extent, that provision must be written back to the extent that it is no longer necessary.

(1A) But provision made in accordance with paragraph 38(2) or (3) in respect of goodwill must not be written back to any extent.

(2) Any amounts written back in accordance with sub-paragraph (1) which are not shown in the profit and loss account must be disclosed (either separately or in aggregate) in a note to the accounts.

40

(1) This paragraph applies to assets included under assets items E.I, II and III (debtors) and F.III (cash at bank and in hand) in the balance sheet.

(2) If the net realisable value of an asset to which this paragraph applies is lower than its cost the amount to be included in respect of that asset is the net realisable value.

(3) Where the reasons for which any provision for diminution in value was made in accordance with sub-paragraph (2) have ceased to apply to any extent, that provision must be written back to the extent that it is no longer necessary.

Development costs

41

(1) Where this is in accordance with generally accepted accounting principles or practice, development costs may be included under assets item B (intangible assets) in the balance sheet format.

(2) If any amount is included in a company's balance sheet in respect of development costs, the note on accounting policies (see paragraph 61 of this Schedule) must include the following information—

(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 development costs in question.

Goodwill

42

(1) Intangible assets must be written off over the useful economic life of the intangible asset.

(2) Where in exceptional cases the useful life of intangible assets cannot be reliably estimated, such assets must be written off over a period chosen by the directors of the company.

(3) The period referred to in sub-paragraph (2) must not exceed ten years.

(4) There must be disclosed in a note to the accounts the period referred to in sub-paragraph (2) and the reasons for choosing that period.

Miscellaneous and supplementary provisions

Excess of money owed over value received as an asset item

43

(1) Where the amount repayable on any debt owed by a company is greater than the value of the consideration received in the transaction giving rise to the debt, the amount of the difference may be treated as an asset.

(2) Where any such amount is so treated—

(a) it must be written off by reasonable amounts each year and must be completely written off before repayment of the debt, and

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

Assets included at a fixed amount

44

(1) Subject to sub-paragraph (2), assets which fall to be included under assets item F.I (tangible assets) in the balance sheet format may be included at a fixed quantity and value.

(2) Sub-paragraph (1) 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 cost

45

(1) The cost of an asset that has been acquired by the company is to be determined by adding to the actual price paid any expenses incidental to its acquisition and then subtracting any incidental reductions in the cost of acquisition.

(2) The cost of an asset constructed by the company is to be determined by adding to the purchase price of the raw materials and consumables used the amount of the costs incurred by the company which are directly attributable to the construction of that asset.

(3) In addition, there may be included in the cost of an asset constructed by the company—

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

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

provided, however, in a case within paragraph (b), that the inclusion of the interest in determining the cost of that asset and the amount of the interest so included is disclosed in a note to the accounts.

46

(1) The cost of any assets which are fungible assets may be determined by the application of any of the methods mentioned in sub-paragraph (2) in relation to any such assets of the same class, provided that the method chosen is 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) the method known as “last in, first out” (LIFO),

(d) any other method reflecting generally accepted best practice.

(3) Where in the case of any company—

(a) the 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 must be disclosed in a note to the accounts.

(4) Subject to sub-paragraph (5), for the purposes of sub-paragraph (3)(b), 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 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 standard of comparison in the case of assets of that class.

Substitution of original amount where price or cost unknown

47

(1) This paragraph applies where—

(a) there is no record of the purchase price of any asset acquired by a company or of any price, expenses or costs relevant for determining its cost in accordance with paragraph 45, or

(b) any such record cannot be obtained without unreasonable expense or delay.

(2) In such a case, the cost of the asset must be taken, for the purposes of paragraphs 36 to 42, to be the value ascribed to it in the earliest available record of its value made on or after its acquisition by the company.

SECTION E — RULES FOR DETERMINING PROVISIONS

Preliminary

48

Provisions which are to be shown in a company's accounts are to be determined in accordance with this Section.

Technical provisions

49

The amount of technical provisions must at all times be sufficient to cover any liabilities arising out of insurance contracts as far as can reasonably be foreseen.

Provision for unearned premiums

50

(1) The provision for unearned premiums must in principle be computed separately for each insurance contract, save that statistical methods (and in particular proportional and flat rate methods) may be used where they may be expected to give approximately the same results as individual calculations.

(2) Where the pattern of risk varies over the life of a contract, this must be taken into account in the calculation methods.

Provision for unexpired risks

51

The provision for unexpired risks (as defined in paragraph 91) must be computed on the basis of claims and administrative expenses likely to arise after the end of the financial year from contracts concluded before that date, in so far as their estimated value exceeds the provision for unearned premiums and any premiums receivable under those contracts.

Long-term business provision

52

(1) The long-term business provision must in principle be computed separately for each long-term contract, save that statistical or mathematical methods may be used where they may be expected to give approximately the same results as individual calculations.

(2) A summary of the principal assumptions in making the provision under sub-paragraph (1) must be given in the notes to the accounts.

(3) The computation must be made annually by a Fellow of the Institute or Faculty of Actuaries with due regard to generally accepted actuarial principles and on the basis of recognised actuarial methods ...

Provisions for claims outstanding

General business

53

(1) A provision must in principle be computed separately for each claim on the basis of the costs still expected to arise, save that statistical methods may be used if they result in an adequate provision having regard to the nature of the risks.

(2) This provision must also allow for claims incurred but not reported by the balance sheet date, the amount of the allowance being determined having regard to past experience as to the number and magnitude of claims reported after previous balance sheet dates.

(3) All claims settlement costs (whether direct or indirect) must be included in the calculation of the provision.

(4) Recoverable amounts arising out of subrogation or salvage must be estimated on a prudent basis and either deducted from the provision for claims outstanding (in which case if the amounts are material they must be shown in the notes to the accounts) or shown as assets.

(5) In sub-paragraph (4), “subrogation” means the acquisition of the rights of policy holders with respect to third parties, and “salvage” means the acquisition of the legal ownership of insured property.

(6) Where benefits resulting from a claim must be paid in the form of annuity, the amounts to be set aside for that purpose must be calculated by recognised actuarial methods, and paragraph 54 does not apply to such calculations.

(7) Implicit discounting or deductions, whether resulting from the placing of a current value on a provision for an outstanding claim which is expected to be settled later at a higher figure or otherwise effected, is prohibited.

54

(1) Explicit discounting or deductions to take account of investment income is permitted, subject to the following conditions—

(a) the expected average interval between the date for the settlement of claims being discounted and the accounting date must be at least four years;

(b) the discounting or deductions must be effected on a recognised prudential basis;

(c) when calculating the total cost of settling claims, the company must take account of all factors that could cause increases in that cost;

(d) the company must have adequate data at its disposal to construct a reliable model of the rate of claims settlements;

(e) the rate of interest used for the calculation of present values must not exceed a rate prudently estimated to be earned by assets of the company which are appropriate in magnitude and nature to cover the provisions for claims being discounted during the period necessary for the payment of such claims, and must not exceed either—

(i) a rate justified by the performance of such assets over the preceding five years, or

(ii) a rate justified by the performance of such assets during the year preceding the balance sheet date.

(2) When discounting or effecting deductions, the company must, in the notes to the accounts, disclose—

(a) the total amount of provisions before discounting or deductions,

(b) the categories of claims which are discounted or from which deductions have been made,

(c) for each category of claims, the methods used, in particular the rates used for the estimates referred to in sub-paragraph (1)(d) and (e), and the criteria adopted for estimating the period that will elapse before the claims are settled.

Long-term business

55

The amount of the provision for claims must be equal to the sums due to beneficiaries, plus the costs of settling claims.

Equalisation reserves

56

The amount of any equalisation reserve maintained in respect of general business by the company, in accordance with the rules made by the Financial Conduct Authority or the Prudential Regulation Authority under Part 10 of the Financial Services and Markets Act 2000 , must be determined in accordance with such rules.

Accounting on a non-annual basis

57

(1) Either of the methods described in paragraphs 58 and 59 may be applied where, because of the nature of the class or type of insurance in question, information about premiums receivable or claims payable (or both) for the underwriting years is insufficient when the accounts are drawn up for reliable estimates to be made.

(2) The use of either of the methods referred to in sub-paragraph (1) must be disclosed in the notes to the accounts together with the reasons for adopting it.

(3) Where one of the methods referred to in sub-paragraph (1) is adopted, it must be applied systematically in successive years unless circumstances justify a change.

(4) In the event of a change in the method applied, the effect on the assets, liabilities, financial position and profit or loss must be stated in the notes to the accounts.

(5) For the purposes of this paragraph and paragraph 58, “underwriting year” means the financial year in which the insurance contracts in the class or type of insurance in question commenced.

58

(1) The excess of the premiums written over the claims and expenses paid in respect of contracts commencing in the underwriting year shall form a technical provision included in the technical provision for claims outstanding shown in the balance sheet under liabilities item C.3.

(2) The provision may also be computed on the basis of a given percentage of the premiums written where such a method is appropriate for the type of risk insured.

(3) If necessary, the amount of this technical provision must be increased to make it sufficient to meet present and future obligations.

(4) The technical provision constituted under this paragraph must be replaced by a provision for claims outstanding estimated in accordance with paragraph 53 as soon as sufficient information has been gathered and not later than the end of the third year following the underwriting year.

(5) The length of time that elapses before a provision for claims outstanding is constituted in accordance with sub-paragraph (4) must be disclosed in the notes to the accounts.

59

(1) The figures shown in the technical account or in certain items within it must relate to a year which wholly or partly precedes the financial year (but by no more than 12 months).

(2) The amounts of the technical provisions shown in the accounts must if necessary be increased to make them sufficient to meet present and future obligations.

(3) The length of time by which the earlier year to which the figures relate precedes the financial year and the magnitude of the transactions concerned must be disclosed in the notes to the accounts.

PART 3 — NOTES TO THE ACCOUNTS

Preliminary

60

(1) Any information required in the case of a company by the following provisions of this Part of this Schedule must be given by way of a note to the accounts.

(2) These notes must be presented in the order in which, where relevant, the items to which they relate are presented in the balance sheet and in the profit and loss account.

General

Disclosure of accounting policies

61

The accounting policies adopted by the company in determining the amounts to be included in respect of items shown in the balance sheet and in determining the profit or loss of the company must be stated (including such policies with respect to the depreciation and diminution in value of assets).

62

It must 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 must be given.

Sums denominated in foreign currencies

63

Where any sums originally denominated in foreign currencies have been brought into account under any items shown in the balance sheet or profit and loss account format, the basis on which those sums have been translated into sterling (or the currency in which the accounts are drawn up) must be stated.

Reserves and dividends

64

There must be stated—

(a) any amount set aside or proposed to be set aside to, or withdrawn or proposed to be withdrawn from, reserves,

(b) the aggregate amount of dividends paid in the financial year (other than those for which a liability existed at the immediately preceding balance sheet date),

(d) the aggregate amount of dividends that are proposed before the date of approval of the accounts, and not otherwise disclosed under sub-paragraph (b) or (c).

Information supplementing the balance sheet

65

(1) Where shares of more than one class have been allotted, the number and aggregate nominal value of shares of each class allotted must be given.

(2) In the case of any part of the allotted share capital that consists of redeemable shares, the following information must 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 or of the shareholder, and

66

If the company has allotted any shares during the financial year, the following information must be given—

(a) the classes of shares allotted, and

(b) as respects each class of shares, the number allotted, their aggregate nominal value and the consideration received by the company for the allotment.

67

(1) With respect to any contingent right to the allotment of shares in the company the following particulars must be given—

(a) the number, description and amount of the shares in relation to which the right is exercisable,

(b) the period during which it is exercisable, and

(2) In sub-paragraph (1) “contingent right to the allotment of shares” means any option to subscribe for shares and any other right to require the allotment of shares to any person whether arising on the conversion into shares of securities of any other description or otherwise.

68

(1) If the company has issued any debentures during the financial year to which the accounts relate, the following information must be given—

(a) the classes of debentures issued, and

(b) as respects each class of debentures, the amount issued and the consideration received by the company for the issue.

(2) 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 386 of the 2006 Act (duty to keep accounting records) must be stated.

Assets

69

(1) In respect of any assets of the company included in assets items B (intangible assets), C.I (land and buildings) and C.II (investments in group undertakings and participating interests) in the company's balance sheet the following information must be given by reference to each such item—

(a) the appropriate amounts in respect of those assets included in the 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 included in assets item B in respect of those assets of—

(i) any determination during that year of the value to be ascribed to any of those assets in accordance with paragraph 23,

(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 the item during that year.

(2) The reference in sub-paragraph (1)(a) to the appropriate amounts in respect of any assets (included in an assets 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 the item on either of the following bases—

(a) on the basis of cost (determined in accordance with paragraphs 45 and 46), or

(b) on any basis permitted by paragraph 22 or 23 ,

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

(3) In addition, in respect of any assets of the company included in any assets item in the company's balance sheet, there must be stated (by reference to each such item)—

(a) the cumulative amount of provisions for depreciation or diminution in value of those assets included under the item as at each date mentioned in sub-paragraph (1)(a),

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

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

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

70

Where any assets of the company (other than listed investments) are included under any item shown in the company's balance sheet at an amount determined on any basis mentioned in paragraph 22 or 23, the following information must be given—

(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 (whichever is stated) the bases of valuation used by them.

71

In relation to any amount which is included under assets item C.I (land and buildings) there must be stated—

(a) how much of that amount is ascribable to land of freehold tenure and how much to land of leasehold tenure, and

(b) how much of the amount ascribable to land of leasehold tenure is ascribable to land held on long lease and how much to land held on short lease.

Investments

72

In respect of the amount of each item which is shown in the company's balance sheet under assets item C (investments) there must be stated how much of that amount is ascribable to listed investments.

Information about fair value of assets and liabilities

73

(1) This paragraph applies where financial instruments or other assets have been valued in accordance with, as appropriate, paragraph 30, 32 or 33.

(2) There must be stated—

(a) the significant assumptions underlying the valuation models and techniques used to determine the fair value of the financial instruments or other assets,

(b) in the case of financial instruments, their purchase price, the items affected and the basis of valuation,

(c) for each category of financial instrument or other asset, the fair value of the assets in that category and the changes in value—

(i) included directly in the profit and loss account, or

(ii) credited to or (as the case may be) debited from the fair value reserve,

in respect of those assets, and

(c) for each class of derivatives, the extent and nature of the instruments, including significant terms and conditions that may affect the amount, timing and certainty of future cash flows.

(3) Where any amount is transferred to or from the fair value reserve during the financial year, there must be stated in tabular form—

(a) the amount of the reserve as at the date of the beginning of the financial year and as at the balance sheet date respectively,

(b) the amount transferred to or from the reserve during the year, and

74

Where the company has derivatives that it has not included at fair value, there must be stated for each class of such derivatives—

(a) the fair value of the derivatives in that class, if such a value can be determined in accordance with paragraph 31, and

(b) the extent and nature of the derivatives.

75

(1) This paragraph applies if—

(a) the company has financial fixed assets that could be included at fair value by virtue of paragraph 30,

(b) the amount at which those assets are included under any item in the company's accounts is in excess of their fair value, and

(c) the company has not made provision for diminution in value of those assets in accordance with paragraph 38(2) of this Schedule.

(2) There must be stated—

(a) the amount at which either the individual assets or appropriate groupings of those individual assets are included in the company's accounts,

(b) the fair value of those assets or groupings, and

(c) the reasons for not making a provision for diminution in value of those assets, including the nature of the evidence that provides the basis for the belief that the amount at which they are stated in the accounts will be recovered.

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

76

(1) This paragraph applies where the amounts to be included in a company's accounts in respect of investment property or living animals and plants have been determined in accordance with paragraph 33.

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

(3) In the case of investment property, for each balance sheet item affected there must be shown, either separately in the balance sheet or in a note to the accounts—

(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.

(4) In sub-paragraph (3), references in relation to any item to the comparable amounts determined in accordance with that sub-paragraph are 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.

Reserves and provisions

77

(1) This paragraph applies where any amount is transferred—

(a) to or from any reserves,

(b) to any provisions for other risks, or

and the reserves or provisions are or would but for paragraph 3(1) be shown as separate items in the company's balance sheet.

(2) The following information must be given in respect of the aggregate of reserves or provisions included in the same item—

(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 amounts transferred to or from the reserves or provisions during that year, and

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

Provision for taxation

78

The amount of any provision for deferred taxation must be stated separately from the amount of any provision for other taxation.

Details of indebtedness

79

(1) In respect of each item shown under “creditors” in the company's balance sheet there must be stated the aggregate of the following amounts—

(a) the 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, and

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

(2) Subject to sub-paragraph (3), in relation to each debt falling to be taken into account under sub-paragraph (1), the terms of payment or repayment and the rate of any interest payable on the debt must be stated.

(3) If the number of debts is such that, in the opinion of the directors, compliance with sub-paragraph (2) would result in a statement of excessive length, it is sufficient to give a general indication of the terms of payment or repayment and the rates of any interest payable on the debts.

(4) In respect of each item shown under “creditors” in the company's balance sheet there must be stated—

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

(b) an indication of the nature of the securities so given.

(5) References above in 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 sub-paragraph (1), to an item shown under the latter of those categories, and

(b) in a case within sub-paragraph (4), to an item shown under either of those categories.

References to items shown under “creditors” include references to items which would but for paragraph 3(1)(b) be shown under that heading.

80

If any fixed cumulative dividends on the company's shares are in arrear, there must be stated—

(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 arrear.

Guarantees and other financial commitments

81

(1) Particulars must be given of any charge on the assets of the company to secure the liabilities of any other person including the amount secured.

(2) Particulars and the total amount of any financial commitments, guarantees and contingencies (excluding those which arise out of insurance contracts) that are not included in the balance sheet must be disclosed.

(3) An indication of the nature and form of any valuable security given by the company in respect of commitments, guarantees and contingencies within sub-paragraph (2) must be given.

(4) The total amount of any commitments within sub-paragraph (2) concerning pensions must be separately disclosed.

(5) Particulars must be given of pension commitments which are included in the balance sheet.

(6) Where any commitment within sub-paragraph (4) or (5) relates wholly or partly to pensions payable to past directors of the company separate particulars must be given of that commitment.

(7) The total amount of any commitments, guarantees and contingencies within sub-paragraph (2) which are undertaken on behalf of or for the benefit of—

(a) any parent undertaking or fellow subsidiary undertaking of the company,

(b) any subsidiary undertaking of the company, or

must be separately stated and those within each of paragraphs (a), (b) and (c) must also be stated separately from those within any other of those paragraphs.

Miscellaneous matters

82

(1) Particulars must be given of any case where the cost of any asset is for the first time determined under paragraph 47.

(2) Where any outstanding loans made under the authority of section 682(2)(b), (c) or (d) of the 2006 Act (various cases of financial assistance by a company for purchase of its own shares) are included under any item shown in the company's balance sheet, the aggregate amount of those loans must be disclosed for each item in question.

Information supplementing the profit and loss account

Separate statement of certain items of income and expenditure

83

(1) Subject to sub-paragraph (2), there must be stated the amount of the interest on or any similar charges in respect of—

(a) bank loans and overdrafts, and

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

(2) Sub-paragraph (1) does not apply to interest or charges on loans to the company from group undertakings, but, with that exception, it applies to interest or charges on all loans, whether made on the security of debentures or not.

Particulars of tax

84

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

(2) The following amounts must be stated—

(a) the amount of the charge for United Kingdom corporation tax,

(b) if that amount would have been greater but for relief from double taxation, the amount which it would have been but for such relief,

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