The Friendly Societies (Accounts and Related Provisions) Regulations 1994

PART IPRELIMINARY

1Citation and commencement

2Interpretation

PART II—ACCOUNTS

4Annual accounts—single accounts society

5Annual accounts—group accounts society

6Content and form of accounts

7Group accounts—supplementary provisions

8Notes to annual accounts

9Associated bodies

10Accounting principles and rules

10AAccounts to have regard to substance of a transaction

11Annual accounts—non-directive society

PART III—COMMITTEE OF MANAGEMENT'S ANNUAL REPORT

12Committee of management’s annual report

PART IV—MISCELLANEOUS AND GENERAL

13Transitional provisions

14Interpretation of Schedules

PART IINCOME AND EXPENDITURE ACCOUNT FORMAT

I.Technical account—General business

1Earned premiums, net of reinsurance (a) gross premiums written (1)...

2Allocated investment return transferred from the non-technical account (item III.6)...

2aInvestment income (8)(10) (a) income from shares in subsidiaries

3Other technical income, net of reinsurance

4Claims incurred, net of reinsurance (4) (a) claims paid

5Change in other technical provisions, net of reinsurance, not shown...

6Bonuses and rebates, net of reinsurance (5)

7Net operating expenses (a) acquisition costs (6)

8Other technical charges, net of reinsurance

9Investment expenses and charges (8) (a) investment management expenses, including...

10Sub-total (balance on the technical account for general business) (item...

II.Technical account—Long term business

1Earned premiums, net of reinsurance (a) gross premiums written (1)...

2Investment income (8)(10) (a) income from shares in subsidiaries

3Unrealised gains on investments (9)

4Other technical income, net of reinsurance

5Claims incurred, net of reinsurance (4) (a) claims paid

6Change in other technical provisions, net of reinsurance, not shown...

7Bonuses and rebates, net of reinsurance (5)

8Net operating expenses (a) acquisition costs (6)

9Investment expenses and charges (8) (a) investment management expenses, including...

10Unrealised losses on investments (9)

11Other technical charges, net of reinsurance

11aTax attributable to the long term business

12Allocated investment return transferred to the non-technical account (item III.4)...

12aTransfers to or from the fund for future appropriations

13Sub-total (balance on the technical account—long term business) (item III.2)...

III.Non-technical account

1Balance on the general business technical account—(item I.10)

2Balance on the long term business technical account—(item II.13)

3Investment income (8) (a) income from shares in subsidiaries

3aUnrealised gains on investments (9)

4Allocated investment return transferred from the long term business technical...

5Investment expenses and charges (8) (a) investment management expenses, including...

5aUnrealised losses on investments (9)

6Allocated investment return transferred to the general business technical account...

8Other charges, including value adjustments

8aExcess of income over expenditure on ordinary activities before tax...

9Tax on excess of income over expenditure on ordinary activities...

10Excess of income over expenditure on ordinary activities after tax...

11Extraordinary income

12Extraordinary charges

13Extraordinary gain or loss

14Tax on extraordinary gain or loss

15Other taxes not shown under the preceding items

16Excess of income over expenditure for the financial year

PART IIFORMAT OF CONSOLIDATED INCOME AND EXPENDITURE ACCOUNT

PART IIINOTES ON THE INCOME AND EXPENDITURE FORMAT

PART IBALANCE SHEET FORMAT

AIntangible assets

CAssets held to cover linked liabilities (11)

DReinsurers' share of technical provisions (12)

GPrepayments and accrued income

BSubordinated liabilities (17)

BaFund for future appropriations (18)

CTechnical provisions

DTechnical provisions for linked liabilities (24)

EProvisions for liabilities

FDeposits received from reinsurers (25)

GCreditors (26)

HAccruals and deferred income

PART IIFORMAT OF CONSOLIDATED BALANCE SHEET

PART IIINOTES ON THE BALANCE SHEET FORMAT

PART IVSPECIAL RULES FOR BALANCE SHEET FORMAT

1Additional items

3Deferred acquisition costs

SCHEDULE 3FORM AND CONTENT OF THE ANNUAL ACCOUNTS OF A GROUP ACCOUNTS SOCIETY

2(1) Where assets and liabilities to be included in the...

3Any differences of accounting rules as between a society’s individual...

4Amounts which in the particular context of any provision of...

5Elimination of group transactions

6Acquisition accounting

7An acquisition must be accounted for by the acquisition method...

8(1) The acquisition method of accounting is as follows.

9(1) The following information with respect to acquisitions taking place...

10(1) There must be stated in a note to the...

11Where during the financial year there has been a disposal...

12The information required by paragraphs 9, 10, or 11 need...

13Minority interests

SCHEDULE 4NOTES TO ANNUAL ACCOUNTS

1Accounting policies

2Sums denominated in foreign currencies

4Aggregate amount of committee members' emoluments

5Details of chairman’s and committee members' emoluments

6Emoluments waived

7Pensions of committee members and past committee members

8Compensation to committee members for loss of office

9Sums paid to third parties in respect of committee members' services

10Supplementary provisions regarding committee members' emoluments

11(1) The amounts to be shown for any financial year...

12Where the Chief Executive of the society is not also...

13Regulation 8(2)(b) does not apply to paragraphs 4 to 12....

14Interpretation of provisions regarding committee members' emoluments

16Where any assets of the society (other than listed investments)...

17In relation to any amount which is included under Asset...

19Reserves and provisions

20Provision for taxation

21Details of indebtedness

22Guarantees and other financial commitments

23Dealings with or interests in subsidiaries and jointly controlled bodies

24Separate statement of certain items of income and expenditure

26Particulars of business

27(1) As regards long term business, the society must disclose:...

28(1) Subject to sub-paragraph (2) below, there must be disclosed...

30Miscellaneous matters

31Committee members' loans and transactions

32Industrial Assurance

33Information about fair value of assets and liabilities

34Information where investment property or living animals and plants included at fair value

35Related Party Transactions

2Holdings in subsidiaries

3Financial years of subsidiaries

4Further information about subsidiaries

5Significant holdings in bodies corporate other than subsidiaries

6(1) The name of the body corporate must be stated....

7(1) Where the society has a significant holding in a...

8Construction of references to shares held by society

10Holdings in subsidiaries

11Financial years of subsidiaries

12Further information about subsidiaries excluded from consolidation

13Jointly controlled bodies

14Other significant holdings of society or group

15(1) The name of the body corporate must be stated....

16(1) Where the society has a significant holding in a...

17(1) The information required by paragraphs 18 and 19 must...

18(1) The name of the body corporate must be stated....

19(1) Where the holding of the group amounts to 20...

20Construction of references to shares held by society or group

21The information required by paragraphs 6, 15 and 18 of...

22For the purposes of paragraphs 4 and 12 of this...

SCHEDULE 6ACCOUNTING PRINCIPLES AND RULES

PART IACCOUNTING PRINCIPLES

2Accounting principles

3Accounting policies must be applied consistently within the same accounts...

4The amount of any item must be determined on a...

5Except so far as these Regulations otherwise specify, income and...

6In determining the aggregate amount of any item the amount...

PART IIDEPARTURE FROM ACCOUNTING PRINCIPLES

7If it appears to the committee of management of a...

PART IIICURRENT VALUE ACCOUNTING RULES

9The same valuation method must be applied to all investments...

10Valuation of assets: general

11(1) Intangible assets other than goodwill may be shown at...

12Alternative valuation of fixed-income securities

13Meaning of “current value”

14(1) In the case of land and buildings, current value...

15Application of the depreciation rules

16(1) This paragraph applies where the amounts to be included...

17Revaluation reserve

PART IVHISTORICAL COST ACCOUNTING RULES

18Subject to paragraphs 8 to 17 above, the amounts to...

Valuation of assets

19General rules

20In the case of any asset included under Assets item...

21(1) This paragraph applies to any asset included under Assets...

22(1) This paragraph applies to assets included under Assets items...

23Development costs

Part IVAValuation at Fair Value

24AInclusion of financial instruments at fair value

24BMethods for determining “fair value”

24CHedged items

24DOther assets which may be included at fair value

24EAccounting for changes in value of financial instruments

24FThe fair value reserve

PART VMISCELLANEOUS AND SUPPLEMENTAL

25Excess of money owed over value received as an asset item

26Assets included at a fixed amount

27Determination of cost

28(1) Subject to the qualification mentioned below, the cost of...

29Substitution of original amount where price or cost unknown

30Assets and liabilities denominated in foreign currencies

31(1) Subject to subparagraph (2), any difference between the amount...

32The provisions of this Schedule which relate to long term...

PART VIRULES FOR DETERMINING PROVISIONS

34Technical provisions

35Provision for unearned premiums

36Provision for unexpired risks

37Long term business provision

Provisions for claims outstanding

38General business

39(1) Explicit discounting or deductions to take account of investment...

40Long term business

SCHEDULE 7ANNUAL ACCOUNTS OF NON-DIRECTIVE SOCIETY

PART IFORMAT OF NON-DIRECTIVE SOCIETY INCOME AND EXPENDITURE ACCOUNT

1Income (a) Contributions (b) (i) Rents from Land and Buildings...

2Expenditure (a) Sickness benefits (b) Endowments on maturity

3Excess of income over expenditure

PART IIFORMAT OF NON-DIRECTIVE SOCIETY BALANCE SHEET

ILand and buildings

IIMortgages on Land and Buildings

IIIBritish Government and British Government Guaranteed Securities

IVOther investments

ITangible assets

IICash at bank and in hand

IIIOther prepayments and accrued income

A.Benefit and Benefit Reserves Funds

IIIMembers' fund

IVOther Benefit and Benefit Reserves Funds

VManagement Fund

B.Corporation tax provisions

IOther creditors including taxation and social security

IIAccruals and deferred income

PART IIINOTES TO ANNUAL ACCOUNTS OF NON-DIRECTIVE SOCIETY

SCHEDULE 8COMMITTEE OF MANAGEMENT'S ANNUAL REPORT

1There must be stated names of the persons who, at...

2The committee of management’s annual report must contain:

3(1) If significant changes in the fixed assets of the...

4(1) Subject to subparagraphs (2) and (3), the committee of...

5(1) This paragraph applies to the committee of management’s annual...

6(1) If at the end of the financial year the...

7The remuneration to be taken into account under paragraph 6(1)(b)...

8There must be contained in the committee of management’s annual...

9There must be stated in the committee of management’s annual...

10(1) The following applies if the society or any subsidiary...

11The committee of management’s annual report must contain particulars of...

PART IINON-DIRECTIVE SOCIETY

12The following paragraphs of Part I of this Schedule are...

SCHEDULE 9INTERPRETATION OF SCHEDULES

1The following paragraphs apply for the purposes of the interpretation...

2Balance sheet date

4Listed investments

8Scots land tenure

10Other definitions

11Financial instruments

12Further Expressions

1994 No. 1983

FRIENDLY SOCIETIES

The Friendly Societies (Accounts and Related Provisions) Regulations 1994

Made20th July 1994

Laid before Parliament1st August 1994

Coming into force1st September 1994

The Friendly Societies Commission, with the consent of the Treasury, in exercise of the powers conferred on it by sections 70 and 71 of, and paragraph 17 of Schedule 14 to, the Friendly Societies Act 19921, and of all other powers enabling it in that behalf, hereby makes the following Regulations: