# The Building Societies (Accounts and Related Provisions) (Amendment) Regulations 2007, Regulation 5: Amendments to the Building Societies (Accounts and Related Provisions) Regulations 1998


In Schedule 9—
(a) in paragraph 1(1)(a), for “as defined in section 6(2) and (3)” substitute “for the purposes of section 6(1)”;
(b) in paragraph 1(1)(c), for “as defined in section 7(2) and (3)” substitute “for the purposes of section 7(1)”;
(c) in paragraph 1(3), after “sub-paragraph (1)(a)” insert “for a society whose annual accounts are Building Societies Act accounts”;
(d) after paragraph 1(3), insert—
“(4) For the purpose of calculating the percentage required to be stated by sub-paragraph (1)(a) for a society whose annual accounts are IAS accounts, the liquid assets and fixed assets of the society and any subsidiary undertakings referred to in paragraphs (a) and (b) of section 6(2) of the Act are those included in the balance sheet.”;
(e) in paragraph 2(1), after “statement of a society” insert “whose annual accounts are Building Societies Act accounts”;
(f) after paragraph 2(1), insert—
“(1A) Subject to the following provisions of this paragraph, the annual business statement of a society whose annual accounts are IAS accounts shall state the following particulars in respect of the society both in relation to the financial year with which it deals and in relation to the previous financial year—
(a) as a percentage of the total of the liability items listed in sub-paragraph (1B) as at the balance sheet date—
(i) the gross capital as at that date;
(ii) the free capital as at that date; and
(iii) liquid assets as of that date;
(b) the profit or loss after taxation as a percentage of the mean total assets; and
(c) management expenses as a percentage of the mean total assets.
(1B) the liability items are shares, amounts owed to credit institutions, amounts owed to other customers, and debt securities in issue.”;
(g) in paragraphs 2(2) and (4), after “sub-paragraph (1)” insert “or (1A)”;
(h) in paragraph 2(5), for “in this paragraph” substitute “for the purposes of sub-paragraph (1) and this sub-paragraph”;
(i) after paragraph 2(5), insert—
“(5A) For the purposes of sub-paragraph (1A)—
(a) “management expenses” means the total of the administrative expenses, depreciation and amortisation as shown in the annual accounts;
(b) “mean total assets” means, in respect of a financial year, the average amount of total assets as would have been included in the balance sheet throughout that year, calculated on a reasonable basis;
(c) “the profit or loss after taxation” shall be taken from the annual accounts; and
(d) “liquid assets” means—
(i) cash and cash equivalents;
(ii) treasury bills and similar securities;
(iii) loans and advances to credit institutions; and
(iv) debt securities and other fixed income securities.”;
(j) in paragraphs 2(6) and (7), for “sub-paragraph (5)(b)” substitute “sub-paragraphs (5)(b) and (5A)(b)”.

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Source: https://www.legislation.gov.uk/uksi/2007/859/regulation/5 (the official version)
Page: https://openlegislation.uk/building-societies-accounts-and-related-provisions-amendment-regulations-2007/regulation-5
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.