The Building Societies (Accounts and Related Provisions) Regulations 1992

Regulation 3

SCHEDULE 1

PART I FORMAT OF SOCIETY INCOME AND EXPENDITURE ACCOUNT

1.  Interest receivable

(a) (i) On secured advances

(ii) On other lending

(b) (i) On debt securities

(ii) On other liquid assets

(c) Other interest receivable

2.  Interest payable

(a) On retail funds and deposits

(b) On non-retail funds and deposits

(c) Other interest payable

3.  Net interest receivable

4.  Income from associated bodies

(a) Income from shares in subsidiary undertakings

(b) Income from participating interests

(c) Income from other associated bodies

5.  Other income and charges

(a) Fees and Commissions receivable

(b) Fees and Commissions payable

(c) Net profit or loss on financial operations

(d) Other operating income

(e) Other operating charges

6.  Amortisation of intangible fixed assets

7.  Administrative expenses

(a) Staff costs

(i) Wages and salaries

(ii) Social security costs

(iii) Other pension costs

(b) Depreciation and other amounts written off tangible fixed assets

(c) Other expenses

8.  Provisions

(a) Provisions for bad and doubtful debts

(b) Provisions for contingent liabilities and commitments.

9.  Adjustments to provisions

(a) Adjustments to provisions for bad and doubtful debts

(b) Adjustments to provisions for contingent liabilities and commitments.

10.  Amounts written off fixed asset investments

11.  Adjustments to amounts written off fixed asset investments

12.  Profit or loss on ordinary activities before tax

13.  Tax on profit or loss on ordinary activities

14.  Profit or loss on ordinary activities after tax

15.  Extraordinary income

16.  Extraordinary charges

17.  Extraordinary profit or loss

18.  Tax on extraordinary profit or loss

19.  Extraordinary profit or loss after tax

20.  Other taxes not shown under the preceding items

21.  Profit or loss for the financial year

PART II FORMAT OF CONSOLIDATED INCOME AND EXPENDITURE ACCOUNT

1.  Interest receivable

(a) (i) On secured advances

(ii) On other lending

(b) (i) On debt securities.

(ii) On other liquid assets.

(c) Other interest receivable

2.  Interest payable

(a) On retail funds and deposits

(b) On non-retail funds and deposits

(c) Other interest payable

3.  Net interest receivable

4.  Income from associated bodies

(a) Income from shares in unconsolidated subsidiary undertakings

(b) Income from associated undertakings

(c) Income from other participating interests

(d) Income from other associated bodies

5.  Other income and charges

(a) Fees and Commissions receivable

(b) Fees and Commissions payable

(c) Net profit or loss on financial operations

(d) Other operating income

(e) Other operating charges

6.  Amortisation of intangible fixed assets

7.  Administrative expenses

(a) Staff costs

(i) Wages and salaries

(ii) Social security costs

(iii) Other pension costs

(b) Depreciation and other amounts written off tangible fixed assets

(c) Other expenses

8.  Provisions

(a) Provisions for bad and doubtful debts

(b) Provisions for contingent liabilities and commitments

9.  Adjustments to provisions

(a) Adjustments to provisions for bad and doubtful debts

(b) Adjustments to provisions for contingent liabilities and commitments

10.  Amounts written off fixed asset investments

11.  Adjustments to amounts written off fixed asset investments

12.  Profit or loss on ordinary activities before tax

13.  Tax on profit or loss on ordinary activities

14.  Profit or loss on ordinary activities after tax

15.  Minority interests

16.  Profit or loss before extraordinary items

17.  Extraordinary income

18.  Extraordinary charges

19.  Extraordinary profit or loss

20.  Tax on extraordinary profit or loss

21.  Extraordinary profit or loss after tax

22.  Minority interests in extraordinary profit or loss after tax

23.  Other taxes not shown under the preceding items

24.  Profit or loss for the financial year.

PART III PROVISIONS APPLICABLE TO PARTS I AND II

1.—(1) Item 1(a) and (b) in each of Part I and II shall include

(a) all income from assets entered under Asset items 2, 3, and 4(a), (b) and (c) in the balance sheet in the corresponding Part of Schedule 2, however calculated,

(b) interest receivable on—

(i) in the case of Part I, advances and loans to associated bodies, and

(ii) in the case of Part II, advances and loans to associated bodies other than subsidiary undertakings, and

(c) (in item 1(b) in each case) interest, other income and profits net of losses arising from liquid assets, except to the extent that they are included in item 5(c) in Parts I and II in accordance with paragraph 5 of this Part,

and the notes to the annual accounts shall disclose the amount of profits net of losses arising from liquid assets (except for amounts included in item 5(c) in Parts I and II) and the amount of interest and other income arising from them as separate amounts unless those two amounts are separately stated under each of item 1(b)(i) and 1(b)(ii) in each case.

(2) Item 1 in each Part shall include fees and commissions receivable similar in nature to interest and calculated on a time basis or by reference to the amount of the claim or liability (but not other fees and commissions receivable).

(3) Item 1 in each Part shall also include income from financial instruments, which is spread over the actual duration of the contract and similar in nature to interest.

2.  Item 1(a)(i) in Parts I and II shall include all income to which paragraph 1 refers arising from secured loans which are not advances secured on land as well as from advances secured on land.

3.—(1) Items 2(a) and (b) in each of Parts I and II shall include as appropriate all charges arising out of liabilities entered under Liability items 10, 11, 15 and 16 in Part I of Schedule 2 or Liability items 11, 12, 16 and 17 of Part II of that Schedule however calculated.

(2) Item 2 in each Part shall include fees and commission payable similar in nature to interest and calculated on a time basis or by reference to the amount of the claim or liability (but not other fees and commissions payable).

(3) Item 2 in each Part shall also include charges on financial instruments, which are spread over the actual duration of the contract and similar in nature to interest.

4.—(1) Item 5(a) in Parts I and II shall include income in respect of all services supplied for the account of third parties, apart from fees and commissions required to be included under “interest receivable” in item 1 in each part, and item 5(b) in those parts shall include charges for the use of services of third parties, apart from fees and commissions required to be include under “interest payable” in item 2 in each part.

(2) Any amount, apart from an appointed agency payment, which represents—

(a) fees and commissions for guarantees and loan administration,

(b) commissions and other charges and income in respect of payment transactions, account administration charges and commissions for the safe custody and administration of deeds, securities or other related documents,

(c) fees and commissions for foreign currency transactions,

(d) commissions and other charges and income in connection with insurance and pension contracts, or

(e) commissions and other charges and income for brokerage services in connection with savings and insurance contracts and loans

and which falls within subparagraph (1) but would also be capable of being included within an item other than those referred to in that subparagraph shall be included within items 5(a) and 5(b) in Parts I and II as appropriate.

(3) Appointed agency payments shall be included within item 7(c) in each Part.

(4) For the purposes of subparagraphs (2) and (3), an appointed agency payment is a payment for a relevant agency function to a person who, by virtue of an appointment by a society, acts as its agent in that function, and a relevant agency function comprises action as an agent of the society for the purpose of receipt of sums in respect of shares or deposits or the making of loans or advances.

5.  Item 5(c) in each of Parts I and II shall comprise—

(a) the net profit or net loss on transactions in securities which are not held as financial fixed assets together with amounts written off or written back as a result of the application of paragraph 16(1) in Schedule 7, and

(b) the net profit or loss on financial instruments, except in so far as that income or charge is included, in accordance with subparagraphs 1(3) and 3(3), under items 1 and 2 in respectively Part I and Part II.

6.  Items 5(d) and (e) in each of Parts I and II shall, where they relate to development properties, include respectively the net profit or loss thereon.

7.  Item 6 in each of Parts I and II shall comprise amortisation and other amounts written off in respect of Asset item 5 in Part I and Asset item 6 in Part II of Schedule 2.

8.  Item 7(b) in each of Parts I and II shall comprise depreciation and other amounts written off in respect of Asset item 6 in Part I and Asset item 7 in Part II of Schedule 2.

9.  Item 8(a) in each of Parts I and II shall comprise charges for amounts written off and for provisions made in respect of commercial assets shown under Asset items 2, 3, 4(a), 4(b) and 4(c) in each of Part I and Part II of Schedule 2; and under Asset item 5(a) of Part II of that Schedule.

10.  Item 8(b) in each of Parts I and II shall comprise charges for provisions for contingent liabilities and commitments of a type which would, if not provided for, be shown under Memorandum items 20 and 21 in Part I and Memorandum items 22 and 23 in Part II of Schedule 2.

11.  Item 9(a) in each of Parts I and II shall include credits from the recovery of commercial assets which were included under Asset items 2, 3, 4(a), 4(b) and 4(c) in each of Parts I and II of Schedule 2 and under Asset item 5(a) of Part II of that Schedule and have been previously written off, or were written back following earlier write offs, and the reduction of provisions previously made with respect to such commercial assets.

12.  Item 9(b) in each of Parts I and II shall comprise credits from the reduction of provisions previously made with respect to contingent liabilities and commitments.

13.  Item 10 shall comprise amounts written off in respect of transferable securities held as financial fixed assets, participating interests, and shares in subsidiary undertakings which are included in Asset items 1(d) and 4(e) in Parts I and II of Schedule 2.

14.  Item 11 shall include amounts written back following earlier write offs and provisions in respect of transferable securities held as financial fixed assets, participating interests and shares in subsidiary undertakings and which are included in Asset items 1(d) and 4(e) in Parts I and II of Schedule 2.

15.  In this Schedule “financial instrument” means—

(a) in relation to Parts I and II, an instrument the powers of the society in relation to which are derived from section 23 of the Act (power to hedge) and any option to purchase or sell any liquid asset, and

(b) additionally in relation to Part II, an instrument on which interest or a dividend is capable of being received and which is not an advance, a loan or a liquid asset.

16.   Where a heading in either Part I or Part II of this Schedule contains the wording “profit or loss”, such wording shall be replaced by “profit” or “loss” as appropriate.