The Local Authorities (Capital Finance and Accounting) (Wales) (Amendment) Regulations 2010

Impairment of certain investments

6.—(1) Regulation 24G is amended as follows.

(2) In paragraph (1)—

(a) in sub-paragraph (b) omit “or”;

(b) after sub-paragraph (b) insert—

“(ba) an impairment loss is recognised in a revenue account of the local authority for the financial year beginning on 1 April 2010;”; and

(c) at the end of sub-paragraph (c) omit “,” and insert—

• “; or

  (d)

  the value of an impairment loss recognised in a revenue account of the local authority for the financial year beginning on 1 April 2009 is increased in a revenue account of the authority for the financial year beginning on 1 April 2010,”.

(3) After paragraph (2) insert—

“(2A) A local authority which credits an amount to a revenue account for the financial year beginning on 1 April 2009 under paragraph (1) may debit an amount of up to the value of that credit to a revenue account for the financial year beginning on 1 April 2010.”.

(4) In paragraph (3)—

(a) in sub-paragraph (a), after “2008” insert “or 1 April 2009”;

(b) in sub-paragraph (b)(i), after “2009” insert “or 1 April 2010”; and

(c) in sub-paragraph (b), after “2009” (where it occurs secondly) insert “or, as the case may be, 1 April 2010”.

(5) After paragraph (5) insert—

“(5A) Subject to paragraph (6), where—

(a) under paragraph (1) a local authority credits an amount to a revenue account for the year beginning on 1 April 2008, 1 April 2009 or 1 April 2010; and

(b) in accordance with proper practices, the authority credits or has credited any amount to a revenue account before 1 April 2011 in respect of interest on the relevant investment not received on or before the date of the event giving rise to the impairment loss,

to the extent it has not debited an amount under paragraphs (4) or (5) in respect of the interest, the local authority must debit to a revenue account for the financial year beginning on 1 April 2010 an amount equal to the total of the amounts mentioned in sub-paragraph (b).”.

(6) In paragraph (6), for “(5)” substitute “(5A)”.

(7) In paragraph (7), after “(2)” insert “or (2A)”.

(8) In paragraph (8)—

(a) for “2010” substitute “2011”; and

(b) for “(5)” substitute “(5A)”.

(9) At the end of sub-paragraph (9)(a) insert “and”.