# The Small Companies and Groups (Accounts and Directors' Report) Regulations 2008, Paragraph 29A: Equity method in respect of participating interests

Extent: E+W+S+N.I.

(1) Participating interests may be accounted for using the equity method.
(2) If participating interests are accounted for using the equity method—
(a) the proportion of profit or loss attributable to a participating interest and recognised in the profit and loss account may be that proportion which corresponds to the amount of any dividends, and
(b) where the profit attributable to a participating interest and recognised in the profit and loss account exceeds the amount of any dividends, the difference must be placed in a reserve which cannot be distributed to shareholders.
(3) The reference to “dividends” in sub-paragraph (2) includes dividends already paid and those whose payment can be claimed.

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Source: https://www.legislation.gov.uk/uksi/2008/409/schedule/1/paragraph/29A (the official version)
Page: https://openlegislation.uk/small-companies-and-groups-accounts-and-directors-report-regulations-2008/schedule-1/paragraph-29A
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.