SCHEDULES

SCHEDULE 7U.K. Special Provisions for Banking and Insurance Companies and Groups

Part IIU.K. [Part II of Schedule 9 to the Companies Act 1985]Accounts of Banking or Insurance Group

Treatment of goodwillE+W+S

3(1)The rules in paragraph 21 of Schedule 4 relating to the treatment of goodwill, and the rules in paragraphs 17 to 19 of that Schedule (valuation of fixed assets) so far as they relate to goodwill, apply for the purpose of dealing with any goodwill arising on consolidation.

(2)Goodwill shall be shown as a separate item in the balance sheet under an appropriate heading; and this applies notwithstanding anything in paragraph 10(1)(b) or (2) of Part I of this Schedule (under which goodwill, patents and trade marks may be stated in the company’s individual accounts as a single item).