The Companies, Partnerships and Groups (Accounts and Reports) Regulations 2015

Amendment of Schedule 9 (interpretation of term “provisions”) to the Large and Medium-sized Companies Accounts Regulations U.K.

40.  After paragraph 2 of Schedule 9 to the Large and Medium-sized Companies Accounts Regulations, insert—

“2A.   At the balance sheet date, a provision must represent the best estimate of the expenses likely to be incurred or, in the case of a liability, of the amount required to meet that liability.

2B.   Provisions must not be used to adjust the value of assets.”