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The Building Societies (Contents of Accounts) Regulations 1999

S.I. 1999/248 · Made 8 February 1999

Original text. legislation.gov.uk does not revise statutory instruments, so later amendments are not shown here. Changes made to it are listed under each provision when known.

BUILDING SOCIETIES

Made 8th February 1999

Laid before Parliament 10th February 1999

Coming into force 23rd March 1999

The Building Societies Commission, with the consent of the Treasury, in exercise of the powers conferred on it by sections 72(7)(d) and (8), and 73(6), (7) and (8) of the Building Societies Act 1986f1, and of all other powers enabling it in that behalf, hereby makes the following Regulations:

Annotations to the whole text

Footnotes

f1

1986 c. 53; section 72 was amended by S.I. 1991/1729 and section 73 was amended by section 43 of and Schedule 7 to the Building Societies Act 1997 (c. 32).

Contents

  1. 1Citation and commencement
  2. 2Interpretation
  3. 3Amendments
  4. 4Transitional provision
  5. Signature
  6. Schedule: AMENDMENTS
  7. 1Building Societies Act 1986
  8. 2Building Societies Act 1986
  9. 3Building Societies Act 1986
  10. 4Building Societies Act 1986
  11. 5Building Societies Act 1986
  12. 6Building Societies (Accounts and Related Provisions) Regulations 1998
  13. 7Building Societies (Accounts and Related Provisions) Regulations 1998
  14. 8Building Societies (Accounts and Related Provisions) Regulations 1998
  15. 9Building Societies (Accounts and Related Provisions) Regulations 1998
  16. 10Building Societies (Accounts and Related Provisions) Regulations 1998
  17. 11Building Societies (Accounts and Related Provisions) Regulations 1998
  18. 12Building Societies (Accounts and Related Provisions) Regulations 1998
  19. 13Building Societies (Accounts and Related Provisions) Regulations 1998
  20. 14Building Societies (Accounts and Related Provisions) Regulations 1998
  21. Explanatory note

1Citation and commencement

These Regulations may be cited as the Building Societies (Contents of Accounts) Regulations 1999 and shall come into force on 23rd March 1999.

2Interpretation

In these Regulations–

  • “the 1986 Act” means the Building Societies Act 1986; and

  • “the 1998 Regulations” means the Building Societies (Accounts and Related Provisions) Regulations 1998f1.

3Amendments

The 1986 Act and the 1998 Regulations are amended as specified in the Schedule.

4Transitional provision

A building society shall prepare, with respect to a financial year which ends after the operative date of the 1998 Regulations for it under regulation 12(6) of those Regulations and before 23rd March 1999, the statement of the source and application of funds which it would have been required to prepare had these Regulations not been made.

Signature

In witness whereof the common seal of the Building Societies Commission is hereto affixed, and is authenticated by me, a person authorised under paragraph 14 of Schedule 1 to the Building Societies Act 1986, on

G.S. Johnson

Secretary to the Commission

4th February 1999.

We consent to this Order.

L.S.

Bob Ainsworth

Jim Dowd

Two of the Lords Commissioners of Her Majesty’s Treasury

8th February 1999

1Building Societies Act 1986

The 1986 Act is amended as follows.

2Building Societies Act 1986

(1)

In subsection (1) of section 72 (duty of directors to prepare annual accounts) immediately preceding paragraph (b) there is inserted the word “and” and paragraph (c) of that subsection and the word “and” immediately preceding it are omitted.

(2)

In subsection (2) of that section for the words “, the state of the affairs and the source and application of the funds,” there are substituted the words “and the state of the affairs”.

(3)

Subsection (4) of that section is hereby repealed.

3Building Societies Act 1986

(1)

Subsection (4) of section 73 (contents and form of annual accounts) is hereby repealed.

(2)

In subsection (5) of that section for “(2), (3) and (4)” there is substituted “(2) and (3)”.

(3)

In subsection (9) of that section for “(2), (3) or (4)” there is substituted “(2) or (3)”.

4Building Societies Act 1986

In subsection (4) of section 78 (auditors' report) immediately preceding paragraph (b) there is inserted the word “and” and paragraph (c) of that subsection and the word “and” immediately preceding it are omitted.

5Building Societies Act 1986

(1)

In subsection (2) of section 80 (signing of balance sheet: documents to be annexed) the words “, the statement of the source and application of the funds” are omitted.

(2)

In subsection (3) of that section the words “, the statement of the source and application of the funds” are omitted.

(3)

In subsection (6) of that section paragraph (b) is omitted.

6Building Societies (Accounts and Related Provisions) Regulations 1998

The 1998 Regulations are amended as follows.

7Building Societies (Accounts and Related Provisions) Regulations 1998

In the definition of “particular account” in regulation 2 for the words “, a balance sheet, or a statement of the source and application of funds” there are substituted the words “or a balance sheet”.

8Building Societies (Accounts and Related Provisions) Regulations 1998

(1)

Immediately preceding paragraph (1)(b) of regulation 3 there is inserted the word “and” and paragraph (1)(c) of that regulation and the word “and” immediately preceding it are omitted.

(2)

Immediately preceding paragraph (2)(b)(iv) of regulation 3 there is inserted the word “and” and paragraph (2)(b)(v) of that regulation and the word “and” immediately preceding it are omitted.

(3)

In paragraph (5) of regulation 3 for “1, 2 or 3” there is substituted “1 or 2”.

(4)

Immediately preceding paragraph (5)(a)(ii) of regulation 3 there is inserted the word “and” and paragraph (5)(a)(iii) of that regulation and the word “and” immediately preceding it are omitted.

(5)

In paragraph (6) of regulation 3 for “1, 2 or 3” there is substituted “1 or 2”.

(6)

In paragraph (7)(a) of regulation 3 for the words “, income and expenditure account and statement of the source and application of funds” there are substituted the words “and income and expenditure account”.

9Building Societies (Accounts and Related Provisions) Regulations 1998

(1)

In paragraph (1) of regulation 4 the words “, the statement of the source and application of funds” are omitted.

(2)

In paragraph (2) of regulation 4 for the words “, the balance sheet and the statement of the source and application of funds” there are substituted the words “and the balance sheet”.

(3)

In paragraph (3) of regulation 4 for “(2), (3), and (4)” there is substituted “(2) and (3)”.

(4)

In paragraph (12) of regulation 4 for “(2), (3) and (4)” there is substituted “(2) and (3)”.

10Building Societies (Accounts and Related Provisions) Regulations 1998

In paragraph (4) of regulation 12 after the word “made” there are inserted the words “subject only to the omission of the statement of the source and application of funds from the annual accounts for a financial year which ends after 22nd March 1999”.

11Building Societies (Accounts and Related Provisions) Regulations 1998

Schedule 3 is omitted.

12Building Societies (Accounts and Related Provisions) Regulations 1998

(1)

In paragraph 1(1) of Schedule 4 for the words “, the consolidated balance sheet and the consolidated statement of the source and application of funds” there are substituted the words “and the consolidated balance sheet”.

(2)

In paragraphs 2(3) and 5(4) of Schedule 4 for “(2), (3) and (4)” there is substituted “(2) and (3)”.

13Building Societies (Accounts and Related Provisions) Regulations 1998

(1)

In paragraph 1(1) of Schedule 5 for the words “, the balance sheet and the statement of the source and application of funds” there are substituted the words “and the balance sheet”.

(2)

In paragraph 2 of Schedule 5 for the words “, income and expenditure account or statement of source and application of funds” there are substituted the words “or income and expenditure account”.

14Building Societies (Accounts and Related Provisions) Regulations 1998

In paragraphs 3(3), 7(4), 11(3), 15(3), 18(3) and 20 of Schedule 6 for “(2), (3) and (4)” there is substituted “(2) and (3)”.

Explanatory note

(This note is not part of the Order)

As from 23rd March 1999 building societies will become subject to the Accounting Standards Board’s Financial Reporting Standard 1. Most other corporate bodies have been subject to the Standard since 1992. It will require societies to produce a cash flow statement as part of their annual accounts. Failure to produce such statements is likely to result in a qualified audit opinion from societies' auditors. A cash flow statement provides information on cash generation and absorption. Its aim is similar to that of the statement of the source and application of funds which building societies have been required to prepare as part of their annual accounts under section 72(1) of the Building Societies Act 1986, and which the cash flow statement has effectively replaced in accounting practice. The statutory requirement for building societies to prepare a statement of the source and application of funds is therefore no longer needed and the requirement under the Standard to produce a cash flow statement will suffice.

These Regulations amend section 72 of the 1986 Act by removing the requirement to prepare a statement of the source and application of funds and make incidental amendments to sections 73, 78 and 80 of the Act consequential on the amendment of section 72. The Regulations also amend the Building Societies (Accounts and Related Provisions) Regulations 1998 by removing references to the statement of the source and application of funds while preserving the requirement to include such a statement in accounts for financial years ending before 23rd March 1999 by a transitional provision.