Companies Act 1985

Accounting principles E+W+S

10 The company shall be presumed to be carrying on business as a going concern.

[F1 11 Accounting policies shall be applied consistently within the same accounts and from one financial year to the next.]

Textual Amendments

F1 Sch. 4 Pt. II para. 11 substituted (subject to the transitional and saving provisions in S.I. 1990/355, arts. 6–9, Sch. 2) by Companies Act 1989 (c. 40, SIF 27), ss. 4(2), 213(2), Sch. 1 para. 5

12 The amount of any item shall be determined on a prudent basis, and in particular—

(a) only profits realised at the balance sheet date shall be included in the profit and loss account; and

(b) all liabilities and losses which have arisen or are likely to arise in respect of the financial year to which the accounts relate or a previous financial year shall be taken into account, including those which only become apparent between the balance sheet date and the date on which it is signed on behalf of the board of directors in pursuance of [F2 section 233] of this Act.

Textual Amendments

F2 Words substituted by Companies Act 1989 (c. 40, SIF 27), ss. 23, 213(2), Sch. 10 para. 20 (subject to the transitional and saving provisions in S.I. 1990/355, arts. 6–9, Sch. 3)

Modifications etc. (not altering text)

C1 Sch. 4 Pt. II para. 12 (b) applied with modifications by S.I. 1990/2570, regs. 3(3), 16(1)

13 All income and charges relating to the financial year to which the accounts relate shall be taken into account, without regard to the date of receipt or payment.

14 In determining the aggregate amount of any item the amount of each individual asset or liability that falls to be taken into account shall be determined separately.