The Building Societies (Accounts and Related Provisions) Regulations 1998

PART III PROVISIONS APPLICABLE TO PARTS I AND II

1.  In Parts I and II—

(a) items 2 and 8 shall include respectively capital receipts and payments in respect of loans and advances included within Asset item B in Parts I and II of Schedule 2;

(b) item 3 shall include net receipts in respect of shares included within Liability item A in Parts I and II of Schedule 2; and

(c) item 4 shall include net receipts in respect of liabilities included within Liability items B, C or D in Parts I and II of Schedule 2.

2.  Where subsidiary undertakings have been acquired or disposed of during a financial year to which a statement of the source and application of funds relates, the effect of such acquisitions or disposals shall be summarised in aggregate by way of a footnote to the statement which shall be separate from the notes to the annual accounts.

3.—(1) There shall be inserted in the notes to the annual accounts such analyses of any items as are material to the assessment of the key factors.

(2) For the purposes of sub-paragraph (1) the key factors, in relation to any statement of the source and application of funds, are—

(a) in Part I, the manner in which the business of the society has been financed and in which its financial resources have been used; and

(b) in Part II, the manner in which the business of the society and its subsidiary undertakings has been financed and in which their financial resources have been used,

during the financial year to which the statement relates.

4.—(1) Where in any item in a statement in Part I or II a positive term is used, and the amount referable thereto represents its corresponding negative term, the corresponding negative term shall be used instead and, where that change falls to be made within the relevant section of the statement, the format of the relevant section of the statement shall be changed so far as necessary to include that item in the grouping opposite to that specified for it in the format.

(2) For the purposes of sub-paragraph (1) the positive terms are increase, receipt and profit, their respective corresponding negative terms are decrease, outflow and loss, the groupings are source of funds and application of funds, and the relevant section of the statement comprises the section ending with item 10 in Parts I and II.