Section 72E Duty to prepare group accountsF1

If at the end of a financial year a building society has subsidiary undertakings, the directors, as well as preparing individual accounts for the year, shall prepare accounts for the year for the society and those undertakings taken as a whole.Those accounts are referred to in this Part as the society’s “group accounts”.

The group accounts of certain societies are required by F2section 403(1) of the Companies Act 2006 to be prepared in accordance with F3UK-adopted international accounting standards (“IAS group accounts”).

The group accounts of other societies may be prepared–

After the first financial year in which the directors of a building society prepare IAS group accounts (“the first IAS year”), all subsequent group accounts of the society must be prepared in accordance with F5UK-adopted international accounting standards unless there is a relevant change of circumstance.

There is a relevant change of circumstance if, at any time during or after the first IAS year, the society ceases to have any securities admitted to trading on a F6UK regulated market.

If, having changed to preparing Building Societies Act group accounts following a relevant change of circumstance, the directors again prepare IAS group accounts for the society, subsection (4) and (5) apply again as if the first financial year for which such accounts are again prepared were the first IAS year.