94 Accounting provisions.U.K.
(1)This section applies where any property, rights or liabilities are transferred by virtue of a transfer scheme between—
(a)the Board and any company which, at the time of the transfer, is either—
(i)a wholly owned subsidiary of the Board; or
(ii)wholly owned by the Crown; or
(b)any two companies which, at the time of the transfer, fall within paragraph (a) above.
(2)Where this section applies, the transfer scheme may state—
(a)the value at which any asset transferred to the transferee by virtue of the scheme is to be entered in the opening accounts of the transferee; or
(b)the amount at which any liability so transferred is to be entered in those accounts.
(3)The value or amount (if any) stated by virtue of subsection (2) above shall be—
(a)in a case where the whole of the asset or liability in question is transferred by the transfer scheme, the value or amount at which the asset or liability appeared in the last full accounts of the transferor, or
(b)in a case where part only of the asset or liability is so transferred, such part of the value or amount at which the asset or liability appeared in the last full accounts of the transferor as may be determined by or in accordance with the transfer scheme,
unless the maker of the transfer scheme considers that some other amount or value is appropriate in all the circumstances of the case, in which case the amount or value stated by virtue of subsection (2) above shall be that other amount or value.
(4)Where this section applies, the transfer scheme may provide that the amount to be included in the opening accounts of the transferee in respect of any item shall be determined as if so much of anything done (or treated as done) by the transferor (whether by way of acquiring, revaluing or disposing of any asset or incurring, revaluing or discharging any liability, or by carrying any amount to any provision or reserve, or otherwise) as may be determined by or in accordance with the transfer scheme had been done by the transferee.
(5)Without prejudice to the generality of the preceding provisions of this section, where this section applies, the transfer scheme may provide—
(a)that the amount to be included from time to time in any reserves of the transferee as representing its accumulated realised profits shall be determined as if such proportion of any profits realised and retained by the transferor as may be determined by or in accordance with the transfer scheme, had been realised and retained by the transferee;
(b)that the amount to be included from time to time in the opening accounts and any subsequent statutory accounts of the transferee as representing its accumulated realised losses shall be determined as if such proportion of any accumulated realised losses of the transferor as may be determined by or in accordance with the transfer scheme had been losses realised by the transferee.
(6)In this section—
“accounting year” means—
(a)in the case of the Board, the period of twelve months ending with 31st March in any year; and
(b)in the case of any company, its financial year, within the meaning of the M1Companies Act 1985;
“the last full accounts”, in connection with any transfer scheme, means—
(a)where the Board is the transferor, the annual accounts prepared by the Board in accordance with section 24 of the M2Transport Act 1962 for the accounting year last ended before the making of the transfer scheme; and
(b)where any other person is the transferor, the statutory accounts of that person for the accounting year last ended before the making of the transfer scheme;
“the opening accounts of the transferee” means any statutory accounts prepared by the transferee for the accounting year next ending after the transfer date;
“statutory accounts” means any accounts prepared by a company for the purpose of any provision of the M3Companies Act 1985 (including group accounts).