Paragraph 12

England, Wales and Scotland

The amount of any item shall be determined on a prudent basis, and in particular—

(a)

only profits realised at the balance sheet date shall be included in the profit and loss account; and

C1(b)

all liabilities F1. . . which have arisen. . . in respect of the financial year to which the accounts relate or a previous financial year shall be taken into account, including those which only become apparent between the balance sheet date and the date on which it is signed on behalf of the board of directors in pursuance of F2section 233 of this Act.

Annotations

Textual amendments

F1: Words in Sch. 4 para. 12(b) omitted (12.11.2004 with effect as mentioned in reg. 1(2) of the amending S.I.) by virtue of The Companies Act 1985 (International Accounting Standards and Other Accounting Amendments) Regulations 2004 (S.I. 2004/2947), reg. 14(1), Sch. 2 para. 5
F2: Words substituted by Companies Act 1989 (c. 40, SIF 27), ss. 23, 213(2), Sch. 10 para. 20 (subject to the transitional and saving provisions in S.I. 1990/355, arts. 6–9, Sch. 3)

Modifications

C1: Sch. 4 Pt. II para. 12 (b) applied with modifications by S.I. 1990/2570, regs. 3(3), 16(1)

Notes on Schedule 4

Textual amendments

F1: Sch. 4 repealed (6.4.2008) by Companies Act 2006 (c. 46), ss. 1295, 1300, Sch. 16; S.I. 2007/3495, art. 8(a), Sch. 2 Pt. 1 (with arts. 7, 12)