Regulation 40 Amendment of Schedule 9 (interpretation of term “provisions”) to the Large and Medium-sized Companies Accounts Regulations

After paragraph 2 of Schedule 9 to the Large and Medium-sized 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 value of assets.”