# The Investment Trusts (Approval of Accounting Methods for Creditor Relationships) Order 2001, Note: Explanatory note


(This note is not part of the Order)
This Order approves the use of two accounting methods for the creditor relationships of investment trusts, for the purposes of paragraph 1 of Schedule 10 to the Finance Act 1996.
The first such method is that contained in a Statement of Recommended Practice issued by the Association of Investment Trusts, with the modifications provided for by the Order. The Statement has the title “Statement of Recommended Practice: Financial Statements of investment trust companies”, bears the date December 1995 and is published by The Association of Investment Trust Companies, Durrant House, 8-13 Chiswell Street, London EC1Y 4YY.
The second such method is the method contained in that Statement, as varied by a Guidance Note issued by the Association of Investment Trusts on 8th January 1997, with the same modifications. The Guidance Note has the same title as the Statement, with the sub-title “Recognition of Income” and is published by the same Association.
Article 1 provides for citation, commencement and effect.
Article 2 provides for interpretation.
Article 3 approves the use of the two accounting methods referred to above, as modified by Article 4.
Article 4 prescribes technical modifications to the accounting methods.
Article 5 prescribes the purposes for which the accounting methods are approved.
Paragraph 1(4) of Schedule 10 to the Finance Act 1996 confers the power to make the retrospective provision made by Article 1 of the Order.

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Source: https://www.legislation.gov.uk/uksi/2001/391/note (the official version)
Page: https://openlegislation.uk/investment-trusts-approval-of-accounting-methods-for-creditor-relationships-order-2001/note
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.