Regulation 24 Amendment of Schedule 7 (interpretation of term “provisions”) to the Small Companies Accounts Regulations

After paragraph 2 of Schedule 7 to the Small Companies Accounts Regulations, insert—

“

2A

At the balance sheet date, a provision must represent the best estimate of the expenses likely to be incurred or, in the case of a liability, of the amount required to meet that liability.

2B

Provisions must not be used to adjust the values of assets.”