Regulation 3 Annual accounts

(1)

In respect of the annual accounts of any single accounts society—

(a)

every income and expenditure account shall be prepared in the format set out in Part I of Schedule 1 below,

(b)

every balance sheet shall be prepared in the format set out in Part I of Schedule 2 below, and

(c)

every statement of the source and application of funds shall be prepared in the format set out in Part I of Schedule 3 below,

and in accordance with the relevant provisions, and every such document shall, subject to the following paragraphs of this Regulation, be prepared in the order and under the headings and sub-headings in the format applicable to it.

(2)

In respect of the annual accounts of any group accounts society—

(a)

the provisions of this Regulation shall apply subject to the provisions of Regulation 4 below, the supplementary provisions of which shall also have effect in relation to those accounts, and

(b)

within those accounts—

(i)

every income and expenditure account relating to the society shall be prepared in the format set out in Part I of Schedule 1 below,

(ii)

every income and expenditure account relating to the society and its relevant subsidiaries shall be prepared in the format set out in Part II of Schedule 1 below,

(iii)

every balance sheet relating to the society shall be prepared in the format set out in Part I of Schedule 2 below,

(iv)

every balance sheet relating to the society and its relevant subsidiaries shall be prepared in the format set out in Part II of Schedule 2 below, and

(v)

every statement of the source and application of funds of the society and its relevant subsidiaries shall be prepared in the format set out in Part II of Schedule 3 below, and if such a statement is also prepared in relation to the society alone, that further statement shall be prepared in the format set out in Part I thereof,

(3)

Paragraphs (1) and (2) above are not to be read as—

(a)

requiring the heading or sub-heading for any item to be distinguished by any letter or number assigned to that item in the format in which it appears, or

(b)

prohibiting the showing of any item in a particular account in greater detail than is required by the format for that particular account.

(4)

Items preceded by lower case letter or Roman numeral in any format set out in Schedule 1, 2 or 3 may be combined in a society’s annual accounts for any financial year if either:—

(a)

their individual amounts are not material to assessing—

(i)

in respect of an income and expenditure account, the income and expenditure of the society (or, as the case may be, the society and its relevant subsidiaries) for that year, and

(ii)

in respect of a balance sheet, the state of affairs of the society (or, as the case may be, the society and its relevant subsidaries) as at the end of that year, and

(iii)

in respect of a statement of the source and application of funds, the manner in which the business of the society (or, as the case may be, the society and its relevant subsidiaries) has been financed and in which its (or their) financial resources have been used during that year, or

(b)

their combination facilitates that assessment,

but where subparagraph (b) above applies, the individual amounts of any items so combined shall be disclosed in a note to the annual accounts.

(5)

Subject to paragraph (7) below, a heading or sub-heading for an item contained in any format set out in Schedule 1, 2 or 3 shall not be included if there is no amount to be shown for that item in respect of the financial year to which the annual accounts relate (and a total need not be included if, as a result of this paragraph, it would be composed of a single item).

(6)

The annual accounts may deal with an investment of the society or any relevant subsidiary in the shares of any body corporate which is not a relevant subsidiary by way of the equity method of accounting in any case where that body corporate is so closely associated with the society or that relevant subsidiary as to justify the use of that method in dealing with that investment in the shares of that body corporate.

(7)

For the purpose of comparing particular accounts with those for the preceding financial year—

(a)

in respect of every item shown in a balance sheet, income and expenditure account and statement of the source and application of funds, the corresponding amount for the preceding financial year shall be shown,

(b)

where that corresponding amount is not comparable with the amount to be shown for the item in question in respect of the financial year to which the annual accounts relate the former amount shall be adjusted and particulars of the adjustment and the reasons for it shall be disclosed in a note to the annual accounts, and

(c)

paragraph (5) above does not apply in any case where an amount can be shown for the item to which the heading or sub-heading relates in respect of the preceding financial year, and in such a case that amount shall be shown under the heading or sub-heading required for that item.

(8)

In this Regulation, “the relevant provisions” means, in relation to any particular account, Part III of the Schedule below Parts I and II of which contain formats of that particular account.