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SCHEDULES

SCHEDULE 9AU.K. Form and Content of Accounts of Insurance Companies and Groups

PART IU.K. Individual Accounts

Chapter IIU.K. Accounting Principles and Rules

Section AU.K. Accounting Principles
PreliminaryU.K.

13Subject to paragraph 19 below, the amounts to be included in respect of all items shown in a company’s accounts shall be determined in accordance with the principles set out in paragraphs 14 to 18 below.

Accounting principlesU.K.

14The company shall be presumed to be carrying on business as a going concern.

15Accounting policies shall be applied consistently within the same accounts and from one financial year to the next.

16The amount of any item shall be determined on a prudent basis, and in particular —

(a)subject to note (9) on the profit and loss account format, 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 section 233 of this Act.

17All 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.

18In 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.

Departure from accounting principlesU.K.

19If it appears to the directors of a company that there are special reasons for departing from any of the principles stated above in preparing the company’s accounts in respect of any financial year they may do so, but particulars of the departure, the reasons for it and its effect shall be given in a note to the accounts.

Valid from 12/11/2004

ValuationU.K.

19A(1)The amounts to be included in respect of assets of any description mentioned in paragraph 22 (valuation of assets: general) are determined either–

(a)in accordance with that paragraph and paragraph 24 (but subject to paragraphs 27 to 29); or

(b)so far as applicable to an asset of that description, in accordance with section BA (valuation at fair value).

(2)The amounts to be included in respect of assets of any description mentioned in paragraph 23 (alternative valuation of fixed-income securities) may be determined–

(a)in accordance with that paragraph (but subject to paragraphs 27 to 29); or

(b)so far as applicable to an asset of that description, in accordance with section BA.

(3)The amounts to be included in respect of assets which–

(a)are not assets of a description mentioned in paragraph 22 or 23, but

(b)are assets of a description to which section BA is applicable,

may be determined in accordance with that section.

(4)Subject to sub-paragraphs (1) to (3), the amounts to be included in respect of all items shown in a company’s accounts are determined in accordance with section C.