Paragraph 7 Schedule 4A: Paragraphs 7 to 12 (Acquisition and merger accounting)
Paragraphs 7 to 12 of Schedule 4A of new Part VII shall not be construed as requiring:
an old acquisition accounted for by way of the merger method of accounting to be accounted for by the acquisition method; or
the re-calculation of any set-off made with respect to an old acquisition or as requiring any re-assessment of the values at which any assets or liabilities acquired as a result of such an acquisition are included in the group accounts.
For the purposes of sub-paragraph (1), an “old acquisition” is an acquisition of a subsidiary undertaking which has been accounted for, in group accounts which a company was required to prepare for a financial year under old Part VII, by way of the merger method or acquisition method of accounting as recognised by generally accepted accounting principles or practice at the time.