{
  "url": "https://openlegislation.uk/draft-large-and-medium-sized-companies-and-groups-accounts-and-reports-regulations-2008/schedule-3/paragraph-10",
  "json_url": "https://openlegislation.uk/draft-large-and-medium-sized-companies-and-groups-accounts-and-reports-regulations-2008/schedule-3/paragraph-10.json",
  "legislation": "ukdsi/2008/9780110806303",
  "legislation_title": "The Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008",
  "legislation_url": "https://openlegislation.uk/draft-large-and-medium-sized-companies-and-groups-accounts-and-reports-regulations-2008",
  "path": "schedule/3/paragraph/10",
  "kind": "paragraph",
  "number": "10",
  "heading": null,
  "text": "(1) In the profit and loss account format set out below—\n(a) the heading “Technical account — General business” is for business which consists of effecting or carrying out contracts of general business; and\n(b) the heading “Technical account — Long-term business” is for business which consists of effecting or carrying out contracts of long-term insurance.\n(2) In sub-paragraph (1), references to—\n(a) contracts of general or long-term insurance, and\n(b) the effecting or carrying out of such contracts,\nmust be read with section 22 of the Financial Services and Markets Act 2000, the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001, and Schedule 2 to that Act.\nBalance sheet format\nASSETS\nA.\nCalled up share capital not paid (1)\nB.\nIntangible assets\n1.\nDevelopment costs\n2.\nConcessions, patents, licences, trade marks and similar rights and assets (2)\n3.\nGoodwill (3)\n4.\nPayments on account\nC.\nInvestments\nI.\nLand and buildings (4)\nII.\nInvestments in group undertakings and participating interests\n1.\nShares in group undertakings\n2.\nDebt securities issued by, and loans to, group undertakings\n3.\nParticipating interests\n4.\nDebt securities issued by, and loans to, undertakings in which the company has a participating interest\nIII.\nOther financial investments\n1.\nShares and other variable-yield securities and units in unit trusts\n2.\nDebt securities and other fixed-income securities (5)\n3.\nParticipation in investment pools (6)\n4.\nLoans secured by mortgages (7)\n5.\nOther loans (7)\n6.\nDeposits with credit institutions (8)\n7.\nOther (9)\nIV.\nDeposits with ceding undertakings (10)\nD.\nAssets held to cover linked liabilities (11)\nDa.\nReinsurers’ share of technical provisions (12)\n1.\nProvision for unearned premiums\n2.\nLong-term business provision\n3.\nClaims outstanding\n4.\nProvisions for bonuses and rebates\n5.\nOther technical provisions\n6.\nTechnical provisions for unit-linked liabilities\nE.\nDebtors (13)\nI.\nDebtors arising out of direct insurance operations\n1.\nPolicyholders\n2.\nIntermediaries\nII.\nDebtors arising out of reinsurance operations\nIII.\nOther debtors\nIV.\nCalled up share capital not paid (1)\nF.\nOther assets\nI.\nTangible assets\n1.\nPlant and machinery\n2.\nFixtures, fittings, tools and equipment\n3.\nPayments on account (other than deposits paid on land and buildings) and assets (other than buildings) in course of construction\nII.\nStocks\n1.\nRaw materials and consumables\n2.\nWork in progress\n3.\nFinished goods and goods for resale\n4.\nPayments on account\nIII.\nCash at bank and in hand\nIV.\nOwn shares (14)\nV.\nOther (15)\nG.\nPrepayments and accrued income\nI.\nAccrued interest and rent (16)\nII.\nDeferred acquisition costs (17)\nIII.\nOther prepayments and accrued income\nLIABILITIES\nA.\nCapital and reserves\nI.\nCalled up share capital or equivalent funds\nII.\nShare premium account\nIII.\nRevaluation reserve\nIV.\nReserves\n1.\nCapital redemption reserve\n2.\nReserve for own shares\n3.\nReserves provided for by the articles of association\n4.\nOther reserves\nV.\nProfit and loss account\nB.\nSubordinated liabilities (18)\nBa.\nFund for future appropriations (19)\nC.\nTechnical provisions\n1.\nProvision for unearned premiums (20)\n(a)\ngross amount\n(b)\nreinsurance amount (12)\n2.\nLong-term business provision (20) (21) (26)\n(a)\ngross amount\n(b)\nreinsurance amount (12)\n3.\nClaims outstanding (22)\n(a)\ngross amount\n(b)\nreinsurance amount (12)\n4.\nProvision for bonuses and rebates (23)\n(a)\ngross amount\n(b)\nreinsurance amount (12)\n5.\nEqualisation provision (24)\n6.\nOther technical provisions (25)\n(a)\ngross amount\n(b)\nreinsurance amount (12)\nD.\nTechnical provisions for linked liabilities (26)\n(a)\ngross amount\n(b)\nreinsurance amount (12)\nE.\nProvisions for other risks\n1.\nProvisions for pensions and similar obligations\n2.\nProvisions for taxation\n3.\nOther provisions\nF.\nDeposits received from reinsurers (27)\nG.\nCreditors (28)\nI.\nCreditors arising out of direct insurance operations\nII.\nCreditors arising out of reinsurance operations\nIII.\nDebenture loans (29)\nIV.\nAmounts owed to credit institutions\nV.\nOther creditors including taxation and social security\nH.\nAccruals and deferred income\nNotes on the balance sheet format\n(1)\nCalled up share capital not paid\n(Assets items A and E.IV.)\nThis item may be shown in either of the positions given in the format.\n(2)\nConcessions, patents, licences, trade marks and similar rights and assets\n(Assets item B.2.)\nAmounts in respect of assets are only to be included in a company’s balance sheet under this item if either—\n(a) the assets were acquired for valuable consideration and are not required to be shown under goodwill, or\n(b) the assets in question were created by the company itself.\n(3)\nGoodwill\n(Assets item B.3.)\nAmounts representing goodwill are only to be included to the extent that the goodwill was acquired for valuable consideration.\n(4)\nLand and buildings\n(Assets item C.I.)\nThe amount of any land and buildings occupied by the company for its own activities must be shown separately in the notes to the accounts.\n(5)\nDebt securities and other fixed-income securities\n(Assets item C.III.2.)\nThis item is to comprise transferable debt securities and any other transferable fixed-income securities issued by credit institutions, other undertakings or public bodies, in so far as they are not covered by assets item C.II.2 or C.II.4.\nSecurities bearing interest rates that vary in accordance with specific factors, for example the interest rate on the inter-bank market or on the Euromarket, are also to be regarded as debt securities and other fixed-income securities and so be included under this item.\n(6)\nParticipation in investment pools\n(Assets item C.III.3.)\nThis item is to comprise shares held by the company in joint investments constituted by several undertakings or pension funds, the management of which has been entrusted to one of those undertakings or to one of those pension funds.\n(7)\nLoans secured by mortgages and other loans\n(Assets items C.III.4 and C.III.5.)\nLoans to policyholders for which the policy is the main security are to be included under “Other loans” and their amount must be disclosed in the notes to the accounts. Loans secured by mortgage are to be shown as such even where they are also secured by insurance policies. Where the amount of “Other loans” not secured by policies is material, an appropriate breakdown must be given in the notes to the accounts.\n(8)\nDeposits with credit institutions\n(Assets item C.III.6.)\nThis item is to comprise sums the withdrawal of which is subject to a time restriction. Sums deposited with no such restriction must be shown under assets item F.III even if they bear interest.\n(9)\nOther\n(Assets item C.III.7.)\nThis item is to comprise those investments which are not covered by assets items C.III.1 to 6. Where the amount of such investments is significant, they must be disclosed in the notes to the accounts.\n(10)\nDeposits with ceding undertakings\n(Assets item C.IV.)\nWhere the company accepts reinsurance this item is to comprise amounts, owed by the ceding undertakings and corresponding to guarantees, which are deposited with those ceding undertakings or with third parties or which are retained by those undertakings.\nThese amounts may not be combined with other amounts owed by the ceding insurer to the reinsurer or set off against amounts owed by the reinsurer to the ceding insurer.\nSecurities deposited with ceding undertakings or third parties which remain the property of the company must be entered in the company’s accounts as an investment, under the appropriate item.\n(11)\nAssets held to cover linked liabilities\n(Assets item D.)\nIn respect of long-term business, this item is to comprise investments made pursuant to long- term policies under which the benefits payable to the policyholder are wholly or partly to be determined by reference to the value of, or the income from, property of any description (whether or not specified in the contract) or by reference to fluctuations in, or in an index of, the value of property of any description (whether or not so specified).\nThis item is also to comprise investments which are held on behalf of the members of a tontine and are intended for distribution among them.\n(12)\nReinsurance amounts\n(Assets item Da: liabilities items C.1.(b), 2.(b), 3.(b), 4.(b) and 6.(b) and D.(b).)\nThe reinsurance amounts may be shown either under assets item Da or under liabilities items C.1.(b), 2.(b), 3.(b), 4.(b) and 6.(b) and D.(b).\nThe reinsurance amounts are to comprise the actual or estimated amounts which, under contractual reinsurance arrangements, are deducted from the gross amounts of technical provisions.\nAs regards the provision for unearned premiums, the reinsurance amounts must be calculated according to the methods referred to in paragraph 50 below or in accordance with the terms of the reinsurance policy.\n(13)\nDebtors\n(Assets item E.)\nAmounts owed by group undertakings and undertakings in which the company has a participating interest must be shown separately as sub-items of assets items E.I, II and III.\n(14)\nOwn shares\n(Assets item F.IV.)\nThe nominal value of the shares must be shown separately under this item.\n(15)\nOther\n(Assets item F.V.)\nThis item is to comprise those assets which are not covered by assets items F.I to IV. Where such assets are material they must be disclosed in the notes to the accounts.\n(16)\nAccrued interest and rent\n(Assets item G.I.)\nThis item is to comprise those items that represent interest and rent that have been earned up to the balance-sheet date but have not yet become receivable.\n(17)\nDeferred acquisition costs\n(Assets item G.II.)\nThis item is to comprise the costs of acquiring insurance policies which are incurred during a financial year but relate to a subsequent financial year (“deferred acquisition costs”), except in so far as—\n(a) allowance has been made in the computation of the long-term business provision made under paragraph 52 below and shown under liabilities item C2 or D in the balance sheet, for—\n(i) the explicit recognition of such costs, or\n(ii) the implicit recognition of such costs by virtue of the anticipation of future income from which such costs may prudently be expected to be recovered, or\n(b) allowance has been made for such costs in respect of general business policies by a deduction from the provision for unearned premiums made under paragraph 50 below and shown under liabilities item C.I in the balance sheet.\nDeferred acquisition costs arising in general business must be distinguished from those arising in long-term business.\nIn the case of general business, the amount of any deferred acquisition costs must be established on a basis compatible with that used for unearned premiums.\nThere must be disclosed in the notes to the accounts—\n(c) how the deferral of acquisition costs has been treated (unless otherwise expressly stated in the accounts), and\n(d) where such costs are included as a deduction from the provisions at liabilities item C.I, the amount of such deduction, or\n(e) where the actuarial method used in the calculation of the provisions at liabilities item C.2 or D has made allowance for the explicit recognition of such costs, the amount of the costs so recognised.\n(18)\nSubordinated liabilities\n(Liabilities item B.)\nThis item is to comprise all liabilities in respect of which there is a contractual obligation that, in the event of winding up or of bankruptcy, they are to be repaid only after the claims of all other creditors have been met (whether or not they are represented by certificates).\n(19)\nFund for future appropriations\n(Liabilities item Ba.)\nThis item is to comprise all funds the allocation of which either to policyholders or to shareholders has not been determined by the end of the financial year.\nTransfers to and from this item must be shown in item II.12a in the profit and loss account.\n(20)\nProvision for unearned premiums\n(Liabilities item C.1.)\nIn the case of long-term business the provision for unearned premiums may be included in liabilities item C.2 rather than in this item.\nThe provision for unearned premiums is to comprise the amount representing that part of gross premiums written which is estimated to be earned in the following financial year or to subsequent financial years.\n(21)\nLong-term business provision\n(Liabilities item C.2.)\nThis item is to comprise the actuarially estimated value of the company’s liabilities (excluding technical provisions included in liabilities item D), including bonuses already declared and after deducting the actuarial value of future premiums.\nThis item is also to comprise claims incurred but not reported, plus the estimated costs of settling such claims.\n(22)\nClaims outstanding\n(Liabilities item C.3.)\nThis item is to comprise the total estimated ultimate cost to the company of settling all claims arising from events which have occurred up to the end of the financial year (including, in the case of general business, claims incurred but not reported) less amounts already paid in respect of such claims.\n(23)\nProvision for bonuses and rebates\n(Liabilities item C.4.)\nThis item is to comprise amounts intended for policyholders or contract beneficiaries by way of bonuses and rebates as defined in Note (5) on the profit and loss account format to the extent that such amounts have not been credited to policyholders or contract beneficiaries or included in liabilities item Ba or in liabilities item C.2.\n(24)\nEqualisation provision\n(Liabilities item C.5.)\nThis item is to comprise the amount of any equalisation reserve maintained in respect of general business by the company, in accordance with the rules in section 1.4 of the Prudential Sourcebook for Insurers made by the Financial Services Authority under Part 10 of the Financial Services and Markets Act 2000.\nThis item is also to comprise any amounts which, in accordance with Council Directive 87/343/EEC of 22nd June 1987, are required to be set aside by a company to equalise fluctuations in loss ratios in future years or to provide for special risks.\nA company which otherwise constitutes reserves to equalise fluctuations in loss ratios in future years or to provide for special risks must disclose that fact in the notes to the accounts.\n(25)\nOther technical provisions\n(Liabilities item C.6.)\nThis item is to comprise, inter alia, the provision for unexpired risks as defined in paragraph 91 below. Where the amount of the provision for unexpired risks is significant, it must be disclosed separately either in the balance sheet or in the notes to the accounts.\n(26)\nTechnical provisions for linked liabilities\n(Liabilities item D.)\nThis item is to comprise technical provisions constituted to cover liabilities relating to investment in the context of long-term policies under which the benefits payable to policyholders are wholly or partly to be determined by reference to the value of, or the income from, property of any description (whether or not specified in the contract) or by reference to fluctuations in, or in an index of, the value of property of any description (whether or not so specified).\nAny additional technical provisions constituted to cover death risks, operating expenses or other risks (such as benefits payable at the maturity date or guaranteed surrender values) must be included under liabilities item C.2.\nThis item must also comprise technical provisions representing the obligations of a tontine’s organiser in relation to its members.\n(27)\nDeposits received from reinsurers\n(Liabilities item F.)\nWhere the company cedes reinsurance, this item is to comprise amounts deposited by or withheld from other insurance undertakings under reinsurance contracts. These amounts may not be merged with other amounts owed to or by those other undertakings.\nWhere the company cedes reinsurance and has received as a deposit securities which have been transferred to its ownership, this item is to comprise the amount owed by the company by virtue of the deposit.\n(28)\nCreditors\n(Liabilities item G.)\nAmounts owed to group undertakings and undertakings in which the company has a participating interest must be shown separately as sub-items.\n(29)\nDebenture loans\n(Liabilities item G.III.)\nThe amount of any convertible loans must be shown separately.\nSpecial rules for balance sheet format",
  "extent": null,
  "status": null,
  "version": "current",
  "annotations": [
    {
      "type": "footnote",
      "label": "f1",
      "text": "FSA 2006/42."
    },
    {
      "type": "footnote",
      "label": "f2",
      "text": "O.J. No. L185 of 4th July 1987, p.72."
    }
  ],
  "outstanding_effects": [],
  "provenance": {
    "source": "legislation.gov.uk",
    "source_url": "https://www.legislation.gov.uk/ukdsi/2008/9780110806303/schedule/3/paragraph/10",
    "retrieved_at": "2026-10-30T15:17:10.246861+00:00"
  },
  "licence": "Open Government Licence v3.0",
  "licence_url": "https://www.nationalarchives.gov.uk/doc/open-government-licence/version/3/",
  "attribution": "Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives."
}