Paragraph 9 Acquisition accountingI1

United Kingdom

(1)

The following information with respect to acquisitions taking place in the financial year must be given in a note to the accounts:

(a)

the name of the body corporate acquired; and

(b)

whether the acquisition was accounted for by the acquisition method.

(2)

In relation to an acquisition which significantly affects the figures shown in the annual accounts of a group accounts society the following further information must be given:

(a)

the composition and fair value of the consideration for the acquisition given by the society and its subsidiaries;

(b)

the profit and loss of the body corporate or group acquired:

(i)

for the period from the beginning of the financial year of the body corporate up to the date of the acquisition;

(ii)

for the previous financial year of that body corporate; and

(iii)

the date on which the financial year referred to in (i) began; and

(c)

where the acquisition method of accounting has been adopted, the book values immediately prior to the acquisition, and the fair values at the date of acquisition, of each class of assets and liabilities of the body corporate acquired, in tabular form, including a statement of the amount of any goodwill or negative consolidation difference arising on the acquisition, together with an explanation of any significant adjustments made.

(3)

In ascertaining for the purposes of subparagraph (2)(b) and (2)(c) the profit or loss of a group, the book values and fair values of assets and liabilities of a group or the amount of the assets and liabilities of a group, the set offs and other adjustments required by this schedule in the case of the annual accounts of a group accounts society must be made.

Annotations

Commencement

I1: Sch. 3 para. 9 in force at 1.9.1994, see reg. 1