Regulation 5 Treatment of the transitional amount
(1)
The transitional amount is treated as a receipt or expense of the long-term business carried on by the insurance company.
(2)
If the transitional amount is a positive amount, the amount is to be treated as a receipt of the business.
(3)
If the transitional amount is a negative amount, the amount is to be treated as an expense of the business.
(4)
Receipts and expenses within this regulation are to be taken into account, in accordance with these Regulations, in calculating—
(a)
the BLAGAB trade profit or loss of the business, and
(b)
the profits of the company’s non-BLAGAB long-term business,
for accounting periods beginning on or after 1st January 2023.