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The Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008

Draft. This instrument was laid in draft and may differ from the one made. Look for the made version under its title.

Draft 2008, ISBN 9780110806303

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.

Draft Regulations laid before Parliament under sections 473(3) and 1290 of the Companies Act 2006, for approval by resolution of each House of Parliament.

COMPANIES

Made *** 2008

Coming into force 6th April 2008

The Secretary of State makes the following Regulations in exercise of the powers conferred by sections 396(3), 404(3), 409(1) to (3), 412(1) to (3), 416(4), 421(1) and (2), 445(3)(a) and (b), 677(3)(a), 712(2)(b)(i), 831(3)(a), 832(4)(a), 836(1)(b)(i) and 1292(1) (a) and (c) of the Companies Act 2006f1.

In accordance with sections 473(3) and 1290 of the Companies Act 2006 a draft of this instrument was laid before Parliament and approved by a resolution of each House of Parliament.

Annotations to the whole text

Footnotes

f1

2006 c.46.

Contents

  1. Part 1: INTRODUCTION
  2. 1Citation and interpretation
  3. 2Commencement and application
  4. Part 2: FORM AND CONTENT OF ACCOUNTS
  5. 3Companies Act individual accounts (companies other than banking and insurance companies)
  6. 4Medium-sized companies: exemptions for Companies Act individual accounts
  7. 5Companies Act individual accounts: banking companies
  8. 6Companies Act individual accounts: insurance companies
  9. 7Information about related undertakings (Companies Act or IAS individual or group accounts)
  10. 8Information about directors’ benefits: remuneration (Companies Act or IAS individual or group accounts: quoted and unquoted companies)
  11. 9Companies Act group accounts
  12. Part 3: DIRECTORS’ REPORT
  13. 10Directors’ report
  14. Part 4: DIRECTORS’ REMUNERATION REPORT
  15. 11Directors’ remuneration report (quoted companies)
  16. Part 5: INTERPRETATION
  17. 12Definition of “provisions”
  18. 13General interpretation
  19. Signature
  20. Schedule 1: COMPANIES ACT INDIVIDUAL ACCOUNTS: COMPANIES WHICH ARE NOT BANKING OR INSURANCE COMPANIES
  21. Part 1: GENERAL RULES AND FORMATS
  22. Chapter SECTION A: GENERAL RULES
  23. 1Paragraph 1
  24. 2Paragraph 2
  25. 3Paragraph 3
  26. 4Paragraph 4
  27. 5Paragraph 5
  28. 6Paragraph 6
  29. 7Paragraph 7
  30. 8Paragraph 8
  31. 9Paragraph 9
  32. SECTION BTHE REQUIRED FORMATS FOR ACCOUNTS
  33. Part 2: ACCOUNTING PRINCIPLES AND RULES
  34. Chapter SECTION A: ACCOUNTING PRINCIPLES
  35. 10Preliminary
  36. 11Accounting principles
  37. 12Accounting principles
  38. 13Accounting principles
  39. 14Accounting principles
  40. 15Accounting principles
  41. Chapter SECTION B: HISTORICAL COST ACCOUNTING RULES
  42. 16Preliminary
  43. Fixed assets
  44. 17General rules
  45. 18Rules for depreciation and diminution in value
  46. 19Rules for depreciation and diminution in value
  47. 20Rules for depreciation and diminution in value
  48. 21Development costs
  49. 22Goodwill
  50. 23Current assets
  51. 24Current assets
  52. Miscellaneous and supplementary provisions
  53. 25Excess of money owed over value received as an asset item
  54. 26Assets included at a fixed amount
  55. 27Determination of purchase price or production cost
  56. 28Determination of purchase price or production cost
  57. 29Substitution of original stated amount where price or cost unknown
  58. Chapter SECTION C: ALTERNATIVE ACCOUNTING RULES
  59. 30Preliminary
  60. 31Preliminary
  61. 32Alternative accounting rules
  62. 33Application of the depreciation rules
  63. 34Additional information to be provided in case of departure from historical cost accounting rules
  64. 35Revaluation reserve
  65. Chapter SECTION D: FAIR VALUE ACCOUNTING
  66. 36Inclusion of financial instruments at fair value
  67. 37Determination of fair value
  68. 38Hedged items
  69. 39Other assets that may be included at fair value
  70. 40Accounting for changes in value
  71. 41The fair value reserve
  72. Part 3: NOTES TO THE ACCOUNTS
  73. 42Preliminary
  74. General
  75. 43Reserves and dividends
  76. 44Disclosure of accounting policies
  77. 45Disclosure of accounting policies
  78. Information supplementing the balance sheet
  79. 46Paragraph 46
  80. 47Share capital and debentures
  81. 48Share capital and debentures
  82. 49Share capital and debentures
  83. 50Share capital and debentures
  84. 51Fixed assets
  85. 52Fixed assets
  86. 53Fixed assets
  87. 54Investments
  88. 55Information about fair value of assets and liabilities
  89. 56Information about fair value of assets and liabilities
  90. 57Information about fair value of assets and liabilities
  91. 58Information where investment property and living animals and plants included at fair value
  92. 59Reserves and provisions
  93. 60Provision for taxation
  94. 61Details of indebtedness
  95. 62Details of indebtedness
  96. 63Guarantees and other financial commitments
  97. 64Miscellaneous matters
  98. Information supplementing the profit and loss account
  99. 65Paragraph 65
  100. 66Separate statement of certain items of income and expenditure
  101. 67Particulars of tax
  102. 68Particulars of turnover
  103. 69Miscellaneous matters
  104. 70Sums denominated in foreign currencies
  105. 71Dormant companies acting as agents
  106. 72Related party transactions
  107. Part 4: SPECIAL PROVISION WHERE COMPANY IS A PARENT COMPANY OR SUBSIDIARY UNDERTAKING
  108. 73Company’s own accounts: guarantees and other financial commitments in favour of group undertakings
  109. Part 5: SPECIAL PROVISIONS WHERE THE COMPANY IS AN INVESTMENT COMPANY
  110. 74Paragraph 74
  111. 75Paragraph 75
  112. Schedule 2: BANKING COMPANIES: COMPANIES ACT INDIVIDUAL ACCOUNTS
  113. Part 1: GENERAL RULES AND FORMATS
  114. Chapter SECTION A: GENERAL RULES
  115. 1Paragraph 1
  116. 2Paragraph 2
  117. 3Paragraph 3
  118. 4Paragraph 4
  119. 5Paragraph 5
  120. 6Paragraph 6
  121. 7Paragraph 7
  122. 8Paragraph 8
  123. 9Paragraph 9
  124. 10Paragraph 10
  125. SECTION BTHE REQUIRED FORMATS
  126. Special rules
  127. 11Subordinated assets
  128. 12Syndicated loans
  129. 13Sale and repurchase transactions
  130. 14Sale and option to resell transactions
  131. 15Managed funds
  132. Part 2: ACCOUNTING PRINCIPLES AND RULES
  133. Chapter SECTION A: ACCOUNTING PRINCIPLES
  134. 16Preliminary
  135. 17Accounting principles
  136. 18Accounting principles
  137. 19Accounting principles
  138. 20Accounting principles
  139. 21Accounting principles
  140. Chapter SECTION B: HISTORICAL COST ACCOUNTING RULES
  141. 22Preliminary
  142. Fixed assets
  143. 23General rules
  144. 24Rules for depreciation and diminution in value
  145. 25Rules for depreciation and diminution in value
  146. 26Rules for depreciation and diminution in value
  147. 27Development costs
  148. 28Goodwill
  149. 29Treatment of fixed assets
  150. 30Financial fixed assets
  151. 31Current assets
  152. 32Current assets
  153. 33Current assets
  154. Miscellaneous and supplementary provisions
  155. 34Excess of money owed over value received as an asset item
  156. 35Determination of cost
  157. 36Determination of cost
  158. 37Substitution of original stated amount where price or cost unknown
  159. Chapter SECTION C: ALTERNATIVE ACCOUNTING RULES
  160. 38Preliminary
  161. 39Preliminary
  162. 40Alternative accounting rules
  163. 41Application of the depreciation rules
  164. 42Additional information to be provided in case of departure from historical cost accounting rules
  165. 43Revaluation reserve
  166. Chapter SECTION D: FAIR VALUE ACCOUNTING
  167. 44Inclusion of financial instruments at fair value
  168. 45Determination of fair value
  169. 46Hedged items
  170. 47Other assets that may be included at fair value
  171. 48Accounting for changes in value
  172. 49The fair value reserve
  173. 50Assets and liabilities denominated in foreign currencies
  174. 51Assets and liabilities denominated in foreign currencies
  175. Part 3: NOTES TO THE ACCOUNTS
  176. 52Preliminary
  177. General
  178. 53Disclosure of accounting policies
  179. 54Disclosure of accounting policies
  180. 55Sums denominated in foreign currencies
  181. 56Reserves and dividends
  182. Information supplementing the balance sheet
  183. 57Paragraph 57
  184. 58Share capital and debentures
  185. 59Share capital and debentures
  186. 60Share capital and debentures
  187. 61Share capital and debentures
  188. 62Fixed assets
  189. 63Fixed assets
  190. 64Fixed assets
  191. 65Fixed assets
  192. 66Information about fair value of assets and liabilities
  193. 67Information about fair value of assets and liabilities
  194. 68Information about fair value of assets and liabilities
  195. 69Information where investment property and living animals and plants included at fair value
  196. 70Reserves and provisions
  197. 71Provision for taxation
  198. 72Maturity analysis
  199. 73Debt and other fixed-income securities
  200. 74Subordinated liabilities
  201. 75Fixed cumulative dividends
  202. 76Details of assets charged
  203. 77Guarantees and other financial commitments
  204. 78Memorandum items: Group undertakings
  205. 79Transferable securities
  206. 80Leasing transactions
  207. 81Assets and liabilities denominated in a currency other than sterling (or the currency in which the accounts are drawn up)
  208. 82Sundry assets and liabilities
  209. 83Unmatured forward transactions
  210. 84Miscellaneous matters
  211. Information supplementing the profit and loss account
  212. 85Paragraph 85
  213. 86Particulars of tax
  214. 87Particulars of income
  215. 88Management and agency services
  216. 89Subordinated liabilities
  217. 90Sundry income and charges
  218. 91Miscellaneous matters
  219. 92Related party transactions
  220. Part 4: INTERPRETATION OF THIS SCHEDULE
  221. 93Definitions for this Schedule
  222. 94Financial fixed assets
  223. 95Financial instruments
  224. 96Financial instruments
  225. 97Repayable on demand
  226. 98Sale and repurchase transaction
  227. 99Sale and option to resell transaction
  228. Schedule 3: INSURANCE COMPANIES: COMPANIES ACT INDIVIDUAL ACCOUNTS
  229. Part 1: GENERAL RULES AND FORMATS
  230. Chapter SECTION A: GENERAL RULES
  231. 1Paragraph 1
  232. 2Paragraph 2
  233. 3Paragraph 3
  234. 4Paragraph 4
  235. 5Paragraph 5
  236. 6Paragraph 6
  237. 7Paragraph 7
  238. 8Paragraph 8
  239. SECTION BTHE REQUIRED FORMATS
  240. 9Paragraph 9
  241. 10Paragraph 10
  242. 11Additional items
  243. 12Managed funds
  244. 13Deferred acquisition costs
  245. Part 2: ACCOUNTING PRINCIPLES AND RULES
  246. Chapter SECTION A: ACCOUNTING PRINCIPLES
  247. 14Preliminary
  248. 15Preliminary
  249. 16Accounting principles
  250. 17Accounting principles
  251. 18Accounting principles
  252. 19Accounting principles
  253. 20Accounting principles
  254. 21Valuation
  255. Chapter SECTION B: CURRENT VALUE ACCOUNTING RULES
  256. 22Valuation of assets: general
  257. 23Valuation of assets: general
  258. 24Alternative valuation of fixed-income securities
  259. 25Meaning of “current value”
  260. 26Meaning of “current value”
  261. 27Application of the depreciation rules
  262. 28Additional information to be provided
  263. 29Revaluation reserve
  264. Chapter SECTION C: VALUATION AT FAIR VALUE
  265. 30Inclusion of financial instruments at fair value
  266. 31Determination of fair value
  267. 32Hedged items
  268. 33Other assets that may be included at fair value
  269. 34Accounting for changes in value
  270. 35The fair value reserve
  271. Chapter SECTION D: HISTORICAL COST ACCOUNTING RULES
  272. Valuation of assets
  273. 36General rules
  274. 37General rules
  275. 38General rules
  276. 39General rules
  277. 40General rules
  278. 41Development costs
  279. 42Goodwill
  280. Miscellaneous and supplementary provisions
  281. 43Excess of money owed over value received as an asset item
  282. 44Assets included at a fixed amount
  283. 45Determination of cost
  284. 46Determination of cost
  285. 47Substitution of original amount where price or cost unknown
  286. Chapter SECTION E: RULES FOR DETERMINING PROVISIONS
  287. 48Preliminary
  288. 49Technical provisions
  289. 50Provision for unearned premiums
  290. 51Provision for unexpired risks
  291. 52Long-term business provision
  292. Provisions for claims outstanding
  293. 53General business
  294. 54General business
  295. 55Long-term business
  296. 56Equalisation reserves
  297. 57Accounting on a non-annual basis
  298. 58Accounting on a non-annual basis
  299. 59Accounting on a non-annual basis
  300. Part 3: NOTES TO THE ACCOUNTS
  301. 60Preliminary
  302. General
  303. 61Disclosure of accounting policies
  304. 62Disclosure of accounting policies
  305. 63Sums denominated in foreign currencies
  306. 64Reserves and dividends
  307. Information supplementing the balance sheet
  308. 65Share capital and debentures
  309. 66Share capital and debentures
  310. 67Share capital and debentures
  311. 68Share capital and debentures
  312. 69Assets
  313. 70Assets
  314. 71Assets
  315. 72Investments
  316. 73Information about fair value of assets and liabilities
  317. 74Information about fair value of assets and liabilities
  318. 75Information about fair value of assets and liabilities
  319. 76Information where investment property and living animals and plants included at fair value
  320. 77Reserves and provisions
  321. 78Provision for taxation
  322. 79Details of indebtedness
  323. 80Details of indebtedness
  324. 81Guarantees and other financial commitments
  325. 82Miscellaneous matters
  326. Information supplementing the profit and loss account
  327. 83Separate statement of certain items of income and expenditure
  328. 84Particulars of tax
  329. 85Particulars of business
  330. 86Particulars of business
  331. 87Particulars of business
  332. 88Commissions
  333. 89Miscellaneous matters
  334. 90Related party transactions
  335. Part 4: INTERPRETATION OF THIS SCHEDULE
  336. 91Definitions for this Schedule
  337. Schedule 4: INFORMATION ON RELATED UNDERTAKINGS REQUIRED WHETHER PREPARING COMPANIES ACT OR IAS ACCOUNTS
  338. Part 1: PROVISIONS APPLYING TO ALL COMPANIES
  339. 1Subsidiary undertakings
  340. 2Financial information about subsidiary undertakings
  341. 3Shares and debentures of company held by subsidiary undertakings
  342. 4Significant holdings in undertakings other than subsidiary undertakings
  343. 5Significant holdings in undertakings other than subsidiary undertakings
  344. 6Significant holdings in undertakings other than subsidiary undertakings
  345. 7Membership of certain undertakings
  346. 8Parent undertaking drawing up accounts for larger group
  347. 9Identification of ultimate parent company
  348. Part 2: COMPANIES NOT REQUIRED TO PREPARE GROUP ACCOUNTS
  349. 10Reason for not preparing group accounts
  350. 11Holdings in subsidiary undertakings
  351. 12Financial years of subsidiary undertakings
  352. 13Exemption from giving information about significant holdings in non-subsidiary undertakings
  353. 14Construction of references to shares held by company
  354. Part 3: COMPANIES REQUIRED TO PREPARE GROUP ACCOUNTS
  355. 15Introductory
  356. 16Subsidiary undertakings
  357. 17Holdings in subsidiary undertakings
  358. 18Joint ventures
  359. 19Associated undertakings
  360. 20Requirement to give information about other significant holdings of parent company or group
  361. 21Group’s membership of certain undertakings
  362. 22Construction of references to shares held by parent company or group
  363. Part 4: ADDITIONAL DISCLOSURES FOR BANKING COMPANIES AND GROUPS
  364. 23Paragraph 23
  365. Part 5: INTERPRETATION OF REFERENCES TO “BENEFICIAL INTEREST”
  366. 24Residual interests under pension and employees’ share schemes
  367. 25Employer’s charges and other rights of recovery
  368. 26Trustee’s right to expenses, remuneration, indemnity etc.
  369. 27Supplementary
  370. Schedule 5: INFORMATION ABOUT BENEFITS OF DIRECTORS
  371. Part 1: PROVISIONS APPLYING TO QUOTED AND UNQUOTED COMPANIES
  372. 1Total amount of directors’ remuneration etc.
  373. Part 2: PROVISIONS APPLYING ONLY TO UNQUOTED COMPANIES
  374. 2Details of highest paid director’s emoluments etc.
  375. 3Excess retirement benefits of directors and past directors
  376. 4Compensation to directors for loss of office
  377. 5Sums paid to third parties in respect of directors’ services
  378. Part 3: SUPPLEMENTARY PROVISIONS
  379. 6General nature of obligations
  380. 7Provisions as to amounts to be shown
  381. 8Exclusion of sums liable to be accounted for to company etc.
  382. 9Meaning of “remuneration”
  383. 10Meaning of “highest paid director”
  384. 11Meaning of “long term incentive scheme”
  385. 12Meaning of “shares” and “share option” and related expressions
  386. 13Meaning of “pension scheme” and related expressions
  387. 14References to subsidiary undertakings
  388. 15Other minor definitions
  389. Schedule 6: COMPANIES ACT GROUP ACCOUNTS
  390. Part 1: GENERAL RULES
  391. 1General rules
  392. 2General rules
  393. 3General rules
  394. 4General rules
  395. 5General rules
  396. 6Elimination of group transactions
  397. 7Acquisition and merger accounting
  398. 8Acquisition and merger accounting
  399. 9Acquisition and merger accounting
  400. 10Acquisition and merger accounting
  401. 11Acquisition and merger accounting
  402. 12Acquisition and merger accounting
  403. 13Acquisition and merger accounting
  404. 14Acquisition and merger accounting
  405. 15Acquisition and merger accounting
  406. 16Acquisition and merger accounting
  407. 17Minority interests
  408. 18Joint ventures
  409. 19Associated undertakings
  410. 20Associated undertakings
  411. 21Associated undertakings
  412. 22Related party transactions
  413. Part 2: MODIFICATIONS FOR BANKING GROUPS
  414. 23General application of provisions applicable to individual accounts
  415. 24General application of provisions applicable to individual accounts
  416. 25Minority interests and associated undertakings
  417. 26Minority interests and associated undertakings
  418. 27Related party transactions
  419. 28Foreign currency translation
  420. 29Foreign currency translation
  421. 30Information as to undertaking in which shares held as a result of financial assistance operation
  422. Part 3: MODIFICATIONS FOR INSURANCE GROUPS
  423. 31General application of provisions applicable to individual accounts
  424. 32General application of provisions applicable to individual accounts
  425. 33Financial years of subsidiary undertakings
  426. 34Assets and liabilities to be included in group accounts
  427. 35Elimination of group transactions
  428. 36Minority interests
  429. 37Associated undertakings
  430. 38Associated undertakings
  431. 39Related party transactions
  432. 40Modifications of Schedule 3 to these Regulations for purposes of paragraph 31
  433. Schedule 7: MATTERS TO BE DEALT WITH IN DIRECTORS’ REPORT
  434. Part 1: MATTERS OF A GENERAL NATURE
  435. 1Introduction
  436. 2Asset values
  437. 3Political donations and expenditure
  438. 4Political donations and expenditure
  439. 5Charitable donations
  440. 6Financial instruments
  441. 7Miscellaneous
  442. Part 2: DISCLOSURE REQUIRED BY COMPANY ACQUIRING ITS OWN SHARES ETC.
  443. 8Paragraph 8
  444. 9Paragraph 9
  445. Part 3: DISCLOSURE CONCERNING EMPLOYMENT ETC. OF DISABLED PERSONS
  446. 10Paragraph 10
  447. Part 4: EMPLOYEE INVOLVEMENT
  448. 11Paragraph 11
  449. Part 5: POLICY AND PRACTICE ON PAYMENT OF CREDITORS
  450. 12Paragraph 12
  451. Part 6: DISCLOSURE REQUIRED BY CERTAIN PUBLICLY-TRADED COMPANIES
  452. 13Paragraph 13
  453. 14Paragraph 14
  454. Schedule 8: QUOTED COMPANIES: DIRECTORS’ REMUNERATION REPORT
  455. Part 1: INTRODUCTORY
  456. 1Paragraph 1
  457. Part 2: INFORMATION NOT SUBJECT TO AUDIT
  458. 2Consideration by the directors of matters relating to directors’ remuneration
  459. 3Statement of company’s policy on directors’ remuneration
  460. 4Statement of consideration of conditions elsewhere in company and group
  461. 5Performance graph
  462. 6Service contracts
  463. Part 3: INFORMATION SUBJECT TO AUDIT
  464. 7Amount of each director’s emoluments and compensation in the relevant financial year
  465. 8Share options
  466. 9Share options
  467. 10Share options
  468. 11Long term incentive schemes
  469. 12Long term incentive schemes
  470. 13Pensions
  471. 14Excess retirement benefits of directors and past directors
  472. 15Compensation for past directors
  473. 16Sums paid to third parties in respect of a director’s services
  474. Part 4: INTERPRETATION AND SUPPLEMENTARY
  475. 17Paragraph 17
  476. 18Paragraph 18
  477. 19Paragraph 19
  478. 20Paragraph 20
  479. 21Paragraph 21
  480. 22Paragraph 22
  481. Schedule 9: INTERPRETATION OF TERM “PROVISIONS”
  482. Part 1: MEANING FOR PURPOSES OF THESE REGULATIONS
  483. 1Definition of “Provisions”
  484. 2Definition of “Provisions”
  485. Part 2: MEANING FOR PURPOSES OF PARTS 18 AND 23 OF THE 2006 ACT
  486. 3Financial assistance for purchase of own shares
  487. 4Redemption or purchase by private company out of capital
  488. 5Net asset restriction on public companies distributions
  489. 6Distributions by investment companies
  490. 7Justification of distribution by references to accounts
  491. Schedule 10: GENERAL INTERPRETATION
  492. 1Capitalisation
  493. 2Financial instruments
  494. 3Financial instruments
  495. 4Fixed and current assets
  496. 5Fungible assets
  497. 6Historical cost accounting rules
  498. 7Leases
  499. 8Listed investments
  500. 9Loans
  501. 10Materiality
  502. 11Participating interests
  503. 12Purchase price
  504. 13Realised profits and realised losses
  505. 14Staff costs
  506. 15Scots land tenure
  507. Explanatory note