SCHEDULE 6COMPANIES ACT GROUP ACCOUNTS

PART 3MODIFICATIONS FOR INSURANCE GROUPS

Elimination of group transactions35

For sub-paragraph (4) of paragraph 6 substitute—

4

Sub-paragraphs (1) and (2) need not be complied with—

a

where a transaction has been concluded according to normal market conditions and a policyholder has rights in respect of the transaction, or

b

if the amounts concerned are not material for the purpose of giving a true and fair view.

5

Where advantage is taken of sub-paragraph (4)(a) that fact must be disclosed in the notes to the accounts, and where the transaction in question has a material effect on the assets, liabilities, financial position and profit or loss of all the undertakings included in the consolidation that fact must also be so disclosed.