Paragraph 33 Information about fair value of assets and liabilitiesF1

(1)

This paragraph applies where financial instruments have been valued in accordance with paragraph 24A or 24C of Schedule 6.

(2)

There shall be stated in the notes to the accounts –

(a)

the significant assumptions underlying the valuation models and techniques used where the fair value of the instruments has been determined in accordance with paragraph 24B(4) of that Schedule;

(b)

for each category of financial instrument, the fair value of the instruments in that category and the changes in their value –

(i)

included in the income and expenditure account, and

(ii)

ii)credited to or (as the case may be) debited from the fair value reserve,

in respect of instruments in that category; and

(c)

for each class of derivative financial instruments, the extent and nature of the instruments, including significant terms and conditions that may affect the amount, timing and certainty of future cash flows.

(3)

Where any amount is transferred to or from the fair value reserve during the financial year, there shall be stated in tabular form –

(a)

the amount of the reserve as at the date of the beginning of the financial year and as at the balance sheet date respectively;

(b)

the amount transferred to or from the reserve during that year; and

(c)

the source and application respectively of the amounts so transferred.

(4)

Where investments are shown at their purchase price, their fair value shall be disclosed in the notes on the accounts.

(5)

Where investments are shown at their fair value, their purchase price shall be disclosed in the notes to the accounts.

(6)

The valuation method applied to each investment item shall be stated in the notes to the accounts, together with the amounts so determined.

Annotations

Textual amendments

F1: Sch. 4 paras. 33, 34 inserted (1.10.2005 with effect as respects financial years which begin on or after 1.1.2005 and end on or after October 2005) by virtue of The Friendly Societies (Accounts and Related Provisions) (Amendment) Regulations 2005 (S.I. 2005/2210), regs. 1(2), 3