Paragraph 2

(1)

In respect of any asset or liability item, the following shall be shown either by subdivision of the relevant items or by way of notes to the accounts—

(a)

in the case of such items in Part I, claims on, or liabilities to, subsidiary undertakings;

(b)

in the case of such items in both Parts I and II, claims on, or liabilities to, any associated body in which the society has a participating interest; and

(c)

in the case of such items in both Parts I and II, claims on, or liabilities to, any associated body other than a subsidiary undertaking or a body in which the society has a participating interest.

(2)

The amount of any assets that are subordinated must be shown either as a subdivision of any relevant asset item or in the notes to the accounts; in the latter case disclosure shall be by reference to the relevant asset item or items in which the assets are included.

(3)

The amounts required to be shown in respect of subparagraphs (1)(a) and (b) shall be further subdivided to show the amounts of any assets or liabilities which are subordinated.

(4)

For the purposes of subparagraphs (2) and (3), assets or liabilities are subordinated if there is a contractual obligation to the effect that in the event of winding up or bankruptcy they are to be repaid only after the claims of other creditors have been met (other than any creditors ranking pari passu with those liabilities) whether or not a ranking has been agreed between the subordinated creditors concerned.