Paragraph 6 Acquisition accounting

The following provisions apply where an undertaking becomes a subsidiary undertaking of the society.

That event is referred to in those provisions as an “acquisition”, and references to the “undertaking acquired” shall be construed accordingly. 7. An acquisition shall be accounted for by the acquisition method of accounting, unless the conditions for accounting for it as a merger as set out in paragraph 10 of Schedule 4A to the Companies Act 1985^f1 are met, in which case the merger method of accounting as detailed in paragraph 11 of the said Schedule 4A shall be employed.