COMPANIES (AMENDMENT) ACT 1986

1. Interpretation. 2. Scope of Act. 3. General provisions in relation to accounts. 4. Format of accounts. 5. Accounting principles. 6. Departure from the accounting principles. 7. Documents to be annexed to annual return. 8. Small companies and medium-sized companies. 9. Reclassification of small companies and medium-sized companies. 10. Exemption for small companies from certain provisions of sections 3 and 7. 11. Exemption for medium-sized companies from certain provisions of sections 3 and 7. 12. Exemptions in relation to notes to accounts for small companies and medium-sized companies. 13. Information to be included in directors’ report. 14. Information to be included in directors’ report regarding, acquisition by company of own shares. 15. Consideration by auditors of consistency of directors’ report with company’s accounts. 16. Publication of information regarding subsidiary and associated companies. 17. Exemption for subsidiaries form section 7. 18. Provisions in relation to documents delivered to registrar ofcompanies. 19. Publication of full or abbreviated accounts.
COMPANIES (AMENDMENT) ACT 1986 – LONG TITLE
AN ACT TO AMEND THE LAW RELATING TO COMPANIES.
[12th July, 1986]
BE IT ENACTED BY THE OIREACHTAS AS FOLLOWS: COMPANIES (AMENDMENT) ACT 1986 – SECT 1
Interpretation.
1.-(1) In this Act, except where the context otherwise requires-
"the Act of 1983 means the Companies (Amendment) Act, 1983;
"company" does not include an unlimited company;
"private company" does not include an unlimited company;
"public company" means a company other than a private company;
"The Principal Act" means the Companies Act, 1963.
(2) In this Act, except where the context otherwise requires, a
reference to a balance sheet or profit and loss account shall
include a reference to any notes to or documents annexed to the
accounts in question giving information which is required by any
provision of the Companies Acts, 1963 to 1986, and required or
allowed by any such provision to be given in a note to or a
document annexed to a company’s accounts. COMPANIES (AMENDMENT) ACT 1986 – SECT 2
Scope of Act.
2.-(1) This Act does not apply to-
( a ) a company not trading for the acquisition of gain by the
members,
( b ) a company to which subsection (4) (c) of section 128 of
the Principal Act applies,
( c ) a company in respect of which there is in force an order
under subsection (5) of that section.
(2) Sections 3 to 6, 8 to 12, 17 to 19, and 24 of this Act do
not apply in relation to-
( a ) a company that is the holder of a licence under the
Central Bank Act, 1971,
( b ) a company that is a trustee savings bank certified under
the Trustee Savings Banks Acts, 1863 to 1965,
( c ) a company engaged solely in the making of hire-purchase
agreements (within the meaning of the Hire-Purchase Act, 1946) and
credit-sale agreements (within the meaning of that Act), in respect
of goods owned by the company,
( d ) a company engaged in the business of accepting deposits or
other repayable funds or granting credit for its own account,
( e ) Agricultural Credit Corporation, public limited company,
( f ) Fóir Teoranta, or
( g ) Industrial Credit Corporation Public Limited Company.
(3) Sections 3 to 12, 17 to 19 and 24 of this Act do not apply
in relation to a company that is the holder of an authorisation
under the European Communities (Non-Life Insurance) Regulations, 1976
(S.I. No. 115 of 1976), or an authorisation under the European
Communities (Life Assurance) Regulations, 1984 (S.I. No. 57 of 1984). COMPANIES (AMENDMENT) ACT 1986 – SECT 3
General provisions in relation to accounts.
3.-(1) Subject to subsection (2) of this section, every balance
sheet and profit and loss account of a company laid before an
annual general meeting of the company, pursuant to section 148 of
the Principal Act, shall comply with the following requirements and
section 149 (other than subsection (5) and, in so far as it
relates to the said subsection (5), subsection (7)) of that Act
shall not apply to any such balance sheet or profit and loss
account:
( a ) every such balance sheet and profit and loss account shall
comply with the provisions of sections 4 and 5 of, and the
Schedule to, this Act,
( b ) every such balance sheet of a company shall give a true
and fair view of the state of affairs of the company as at the
end of its financial year and every such profit and loss account
of a company shall give a true and fair view of the profit or
loss of the company for the financial year,
( c ) where a balance sheet or profit and loss account drawn up
in accordance with paragraph (a) of this subsection would not
provide sufficient information to comply with paragraph (b) of this
subsection, any necessary additional information shall be provided in
that balance sheet or profit and loss account or in a note to the
accounts,
( d ) where, owing to special circumstances, the preparation of
accounts of a company in compliance with the said paragraph (a)
would prevent those accounts from complying with paragraph (b) (even
if additional information were provided under paragraph (c) of this
subsection), the directors of the company shall depart from the
requirements of the Schedule to this Act in preparing those accounts
insofar as is necessary in order to comply with that paragraph,
( e ) where the directors of a company depart from the
requirements of this section, they shall attach a note to the
accounts of the company giving details of the particular departures
made, the reasons therefor and the effect of those departures on
the accounts, and, accordingly, in the Companies Acts, 1963 to 1982, and the
Companies (Amendment) Act, 1983. in relation to a company to which
this Act applies-
(i) references to the said section 149 shall be construed as
references to subsection (5) and, in so far as it relates to the
said subsection (5), subsection (7) of the said section 149 and to
the provisions of this Act corresponding to the other provisions of
the said section 149, and
(ii) references to the Sixth Schedule shall be construed as
references to the corresponding provisions of this Act.
(2) Subsection (1) of this section shall not apply to the profit
and loss account of a company if-
( a ) the company has subsidiaries, and
( b ) the profit and loss account is framed as a consolidated
profit and loss account dealing with all or any of the company’s
subsidiaries as well as the company, and-
(i) complies with the requirements of this Act relating to
consolidated profit and loss accounts, and
(ii) shows how much of the consolidated profit or loss for the
financial year concerned is dealt with in the accounts of the
company.
(3) Where, in the case of a company, advantage is taken of
subsection (2) of this section, that fact shall be disclosed in a
note to the group accounts.
(4) Subsection (1) (b) of this section overrides the requirements of
sections 4 and 5 of, and the Schedule to, this Act and all other
requirements of the Companies Acts, 1963 to 1986, as to the matters
to be included in the accounts of a company or in notes to those
accounts; and, accordingly, where a balance sheet or profit and loss
account of a company drawn up in accordance with those requirements
would not provide sufficient information to comply with the said
subsection (1) (b), any necessary additional information shall be
provided in that balance sheet or profit and loss account or in a
note to the accounts. COMPANIES (AMENDMENT) ACT 1986 – SECT 4
Format of accounts.
4.-(1) Subject to the provisions of this section, every balance
sheet of a company shall show the items listed in either of the
balance sheet formats set out in the Schedule to this Act and
every profit and loss account of a company shall show the items
listed in any one of the profit and loss accounts formats so set
out in either case in the order and under the headings and
sub-headings given in the format adopted.
(2) Subsection (1) of this section shall not be construed as
requiring the heading or sub-heading for any item in the balance
sheet, or profit and loss account, of a company to be distinguished
by any letter or number assigned to that item in the formats set
out in the Schedule to this Act.
(3) Where the balance sheet, or profit and loss account, of a
company has been prepared by reference to one of the formats set
out in the Schedule to this Act, the directors of the company
shall adopt the same format in preparing the accounts for subsequent
financial years unless. in their opinion, there are special reasons
for a change.
(4) Where any change is made in accordance with subsection (3) of
this section in the format adopted in preparing a balance sheet, or
profit and loss account, of a company, the reasons for the change,
together with full particulars of the change, shall be given in a
note to the accounts in which the new format is first adopted.
(5) Any item required in accordance with the Schedule to this Act
to be shown in the balance sheet, or profit and loss account, of
a company, may be shown in greater detail than that required by
the format adopted.
(6) Any items to which an Arabic number is assigned in any of the
formats set out in the Schedule to this Act may be combined in
the accounts of a company-
( a ) in any case where the individual amounts of such items are
not material to assessing the state of affairs or profit or loss
of the company for the financial year concerned, or
( b ) in any case where the combination of such items facilitates
that assessment.
(7) Where items are combined in a company’s accounts pursuant to
subsection (6) (b) of this section, the individual amounts of any
items so combined shall be disclosed in a note to the accounts.
(8) In respect of every item shown in the balance sheet, or profit
and loss account, of a company, the corresponding amount for the
financial year immediately preceding that to which the balance sheet
or profit and loss account refers shall also be shown and, if that
corresponding amount is not comparable with the amount to be shown
for the item in question in respect of the financial year to which
the balance sheet or profit and loss account relates, the former
amount shall be adjusted, and particulars of the adjustment and the
reasons therefor shall be given in a note to the accounts.
(9) Subject to subsection (10) of this section, a heading or
subheading corresponding to an item listed in the format adopted in
preparing the balance sheet, or profit and loss account, of a
company, shall not be included in the balance sheet or profit and
loss account, as the case may be, if there is no amount to be
shown for that item in respect of the financial year to which the
balance sheet or profit and loss account relates.
(10) Subsection (9) of this section shall not apply in any case
where an amount can be shown for the item in question in respect
of the financial year immediately preceding that to which the
balance sheet or profit and loss account relates, and that amount
shall be shown under the heading or sub-heading required by the
format adopted as aforesaid.
(11) Amounts in respect of items representing assets or income may
not be set off in the accounts of a company against amounts in
respect of items representing liabilities or expenditure, as the case
may be, or vice versa.
(12) The balance sheet, or profit and loss account, of a company
may include an item representing or covering the amount of any
asset or liability or income or expenditure not otherwise covered by
any of the items listed in the format adopted but the following
shall not be treated as assets in the balance sheet of a company-
( a ) preliminary expenses,
( b ) expenses of, and commission on, any issue of shares or
debentures, and
( c ) costs of research.
(13) In preparing the balance sheet, or profit and loss account, of
a company, the directors of the company shall adapt the arrangement
and headings and sub-headings otherwise required by subsection (1) of
this section in respect of items to which an Arabic number is
assigned in the format adopted, in any case where the special
nature of the company’s business requires such adaptation.
(14) Every profit and loss account of a company shall show the
amount of the profit or loss of the company on ordinary activities
before taxation.
(15) The profit and loss account of a company for a financial year
shall show-
( a ) separately, the aggregate amount of the dividends paid and
the aggregate amount of the dividends proposed to be paid,
( b ) any transfer between the profit and loss account and
reserves,
( c ) any increase or reduction in the balance on the profit and
loss account since the immediately preceding financial year,
( d ) the profit or loss brought forward at the beginning of the
year, and
( e ) the profit or loss carried forward at the end of the year. COMPANIES (AMENDMENT) ACT 1986 – SECT 5
Accounting principles.
5.-Subject to section 6 of this Act, the amounts to be included in
the accounts of a company in respect of the items shown shall be
determined in accordance with the following principles:
( a ) the company shall be presumed to be carrying on business as
a going concern,
( b ) accounting policies shall be applied consistently from one
financial year to the next,
( c ) the amount of any item in the accounts shall be determined
on a prudent basis and in particular-
(i) only profits realised at the balance sheet date shall be
included in the profit and loss account, and
(ii) 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 liabilities and losses which only become apparent
between the balance sheet date and the date on which the accounts
are signed in pursuance of section 156 of the Principal Act,
( d ) all 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, and
( e ) in 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. COMPANIES (AMENDMENT) ACT 1986 – SECT 6
Departure from the accounting principles.
6.-If it appears to the directors of a company that there are
special reasons for departing from any of the principles specified
in section 5 of this Act, they may so depart, but particulars of
the departure, the reasons for it and its effect on the balance
sheet and profit and loss account of the company shall be stated
in a note to the accounts, for the financial year concerned, of
the company. COMPANIES (AMENDMENT) ACT 1986 – SECT 7
Documents to be annexed to annual return.
7.-(1) Subject to the provisions of this Act, there shall be
annexed to the annual return-
( a ) (i) in the case of a company other than a company to
which subsection (2) or (3) of section 2 of this Act applies, a
copy of the balance sheet, and profit and loss account, of the
company drawn up in accordance with sections 3, 4 and 5 of, and
the Schedule to, this Act,
(ii) in the case of a company to which section 2 (2) of this Act
applies, a copy of the balance sheet, and profit and loss account,
of the company drawn up in accordance with The Principal Act,
and a copy of the report of the auditors on, and the report of
the directors accompanying, each such balance sheet and profit and
loss amount, and each such copy shall be certified both by a
director, and the secretary, of the company to be a true copy of
such balance sheet, profit and loss account, or report, as the case
may be, laid before the annual general meeting of the company held
during the period to which the return relates, and
( b ) where a document, being a balance sheet, profit and loss
account, report, or statement, annexed to the annual return, is in
a language other than the English language or the Irish language,
there shall be annexed to each such document a translation in the
English language or the Irish language certified in the prescribed
manner to be a correct translation.
(2) If a document required by this section to be annexed to the
annual return referred to in subsection (1) of this section does
not comply with the provisions of the law in force at the date of
the relevant audit with respect to the form and the contents of
the document, there shall be made by the company concerned such
amendments in the copy as are necessary in order to bring it into
compliance with those provisions, and the fact that the copy has
been so amended shall be stated therein.
(3) section 128 of the Principal Act shall not apply to a company
to which this section applies. COMPANIES (AMENDMENT) ACT 1986 – SECT 8
Small companies and medium-sized companies.
8.-(1) Subject to section 9 of this Act-
( a ) a private company shall qualify to be treated as a small
company for the purposes of this Act in respect of any financial
year of the company if, in respect of that year and the financial
year of the company immediately preceding that year, the company
satisfies at least two of the conditions specified in subsection (2)
of this section, and
( b ) a private company shall qualify to be treated as a medium
sized company for the purposes of this Act in respect of any
financial year of the company if, in respect of that year and the
financial year of the company immediately preceding that year, the
company satisfies at least two of the conditions specified in
subsection (3) of this section
(2) The qualifying conditions for a company to be treated as a
small company in respect of any financial year are as follows:
( a ) its balance sheet total for that year shall not exceed
£1,250,000,
( b ) the amount of its turnover for that year shall not exceed
£2,500,000, and
( c ) the average number of persons employed by the company in
that year shall not exceed 50.
(3) The qualifying conditions for a company to be treated as a
medium-sized company in respect of any financial year are as
follows:
( a ) its balance sheet total for that year shall not exceed
£5,000,000,
( b ) the amount of its turnover for that year shall not exceed
£10,000, 000, and
( c ) the average number of persons employed by the company in
that year shall not exceed 250.
(4) In this section "balance sheet total", in relation to any
financial year of a company, means-
( a ) where Format 1 of the balance sheet formats set out in the
Schedule to this Act is adopted by the company, the aggregate of
the amounts shown in the company’s balance sheet for that year
under headings corresponding to items A and B in that Format, and
( b ) where Format 2 of those formats is adapted by the company,
the aggregate of the amounts so shown under "Assets".
(5) In this section "amount of turnover", In relation to any
financial year of a company, means the amounts of the turnover
shown in the profit and loss account of the company under headings
corresponding to the relevant items in any of the Formats of profit
and loss accounts set out in the Schedule to this Act.
(6) In the application of this section to any period which is a
financial year of a company, but is not in fact a year the
amounts specified in subsection (2) (b) and (3) (b) of this section
shall be proportionately adjusted.
(7) A private company which is incorporated on or after the
commencement of this section shall qualify to be treated as a small
company or, as the case may be, as a medium-sized company in
respect of its first financial year if it satisfies at least two
of the relevant qualifying conditions specified in subsection (2) or
(3), as may be appropriate, of this section in respect of that
financial year.
(8) A private company which was incorporated before such commencement
shall qualify to be treated under subsection (1) of this section as
a small company or, as the case may be, as a medium-sized company,
in respect of the first financial year of the company in which
accounts of the company are required to be prepared in accordance
with section 3 of this Act if it satisfies at least two of the
relevant qualifying conditions specified in subsection (2) or (3), as
may be appropriate, of this section in respect of either that first
financial year or the financial year immediately preceding that year,
(9) For the purposes of subsections (2) (c) and (3) (c) of this
section, the average number of persons employed by a company shall
be determined by applying the method of calculation prescribed by
paragraph 42 (4) of the Schedule to this Act for determining the
number required by subparagraph (1) of that paragraph to be stated
in a note to the accounts of a company.
(10) In determining for the purposes of subsection (8) of this
section whether a company satisfied at least two of the relevant
conditions specified in subsection (2) or (3), as may be
appropriate, of this section in respect of a financial year in a
cast where the accounts of the company in respect of that year
prepared under the Companies Acts, 1963 to 1983, are not prepared
in accordance with this Act, subsection (4) of this section shall
be construed as referring to the aggregate of any amounts included
in the balance sheet of the company for that year which correspond
to the amounts mentioned in paragraph (a) or (b), as may be
appropriate, of that subsection.
(11) The Minister may by order substitute different amounts, totals
and numbers, respectively, for the amounts, totals and numbers
specified for the time being in subsections (2) and (3) of this
section and those subsections shall have effect in accordance with
any order for the time being in force under this section.
(12) An order under this section shall be laid before each House
of the Oireachtas as soon as may be after it is made and, if a
resolution annulling the order is passed by either such House within
the next twenty-one days on which that House has sat after the
order is laid before it, the order shall be annulled accordingly
but without prejudice to the validity of anything previously done
thereunder. COMPANIES (AMENDMENT) ACT 1986 – SECT 9
Reclassification of small companies and medium-sized companies.
9.-(1) Where a private company has qualified to be treated as a
small company under subsection (1) of section 8 of this Act, it
shall continue to be so qualified, unless, in the latest financial
year of the company and the financial year of the company
immediately preceding that year, it does not satisfy at least two
of the conditions set out in subsection (2) of the said section 8
and if, during each of those two years, it does not satisfy at
least two of those conditions, it shall, in respect of its latest
financial year, cease to be so qualified.
(2) Where a private company has qualified to be treated as a
medium-sized company under subsection (1) of section 8 of this Act,
it shall continue to be so qualified unless, in the latest
financial year of the company and the financial year of the company
immediately preceding that year, it does not satisfy at least two
of the conditions set out in subsection (3) of the said section 8
for treatment as a medium-sized company and, if during each of
those two years, it does not satisfy at least two of those
conditions, it shall, in respect of its latest financial year, cease
to be so qualified.
(3) A company which qualified to be treated as a medium-sized
company under subsection (2) of this section in the financial year
immediately preceding its latest financial year shall qualify to be
treated as a small company for the purposes of this Act in respect
of its latest financial year if, in those two years, it satisfies
at least two of the conditions set out in section 8 (2) of this
Act.
(4) Where a private company ceases to be qualified as specified in
subsection (1) or (2) of this section, section 8 of this Act shall
apply in respect of the company as if it had never previously
qualified to be treated as a small company or a medium-sized
company under that section. COMPANIES (AMENDMENT) ACT 1986 – SECT 10
Exemption for small companies from certain provisions of sections 3
and 7.
10.-(1) Notwithstanding paragraph (a) of section 3 (1) of this Act,
but subject to paragraph (b) of the said section 3 (1),the
directors of a company treated as a small company pursuant to
section 8 (1) of this Act may draw up an abridged balance sheet
showing only those items preceded by letters or roman numerals in
Formats 1 and 2 of the balance sheet formats set out in the
Schedule to this Act:
Provided that the total amounts falling due within one year and
after one year shall be shown separately for item B. II in Format
1 and items B. II under "Assets" and C under "Liabilities" in
Format 2 of the balance sheet formats in relation to debtors and
creditors.
(2) A company treated as a small company pursuant to section 8 (1)
of this Act may, in lieu of complying with the requirements in
that behalf in section 7 of this Act, annex to the annual return
in relation to the company referred to in that section a copy of
the balance sheet of the company drawn up in accordance with
subsection (1) of this section in respect of the period to which
the return refers and, notwithstanding the said section 7, the
company shall not be required to annex to the return a copy of
the profit and loss account of the company or the report of the
directors accompanying the balance sheet of the company. COMPANIES (AMENDMENT) ACT 1986 – SECT 11
Exemption for medium-sized companies from certain provisions of
sections 3 and 7.
11.-(1) Notwithstanding paragraph (a) of section 3 (1) of this Act,
but subject to paragraph (b) of the said section 3 (1), the
directors of a company treated as a medium-sized company under this
Act may combine as one item in its profit and loss account under
the heading "gross profit or loss" the following items that is to
say:
( a ) items 1, 2, 3 and 6 in Format 1 of the profit and loss
account formats set out in the Schedule to this Act,
( b ) items 1 to 5 in Format 2 of the said profit and loss
account formats,
( c ) items A.1, B.1 and B.2 in Format 3 of the said profit and
loss account formats,
( d ) items A.1, A.2 and B.1 to B.4 in Format 4 of the said
profit and loss account formats.
(2) Notwithstanding section 7 of this Act, but subject to section 3
(1) (b) of this Act, a company treated as a medium-sized company
under this Act may annex to the annual return in relation to the
company a copy of an abridged balance sheet of the company for the
period to which the return relates showing only those items preceded
by letters or roman numerals in Formats 1 and 2 of the balance
sheet formats set out in the Schedule to this Act:
Provided that the amounts in respect of the following items shall
be disclosed separately either in the balance sheet of the company
or in the notes to the accounts of the company, that is to say:
( a ) in Format 1 of the said balance sheet formats, items A. I.
3, A. II. 1, 2, 3 and 4, A. III. 1, 2, 3, 4 and 7, B.II.2, 3
and 6, B.III.1 and 2, C. 1, 2, 6, 7, 8 and 9 and F. 1, 2, 6,
7, 8 and 9, and
( b ) in Format 2 of the said balance sheet formats, under
"Assets", items A. I. 3, A. II. 1, 2, 3 and 4, A. III. 1, 2,
3, 4 and 7, B.II.2, 3 and 6 and B.III.1 and 2 and under
"Liabilities", items C.1, 2, 6, 7, 8 and 9:
Provided also that the balance sheet of the company shall show
separately the amounts falling due within one year and after one
year in respect of items B. II in the said Format 1 in total and
in respect, individually, of items B. II. 2 and 3 in the said
Format 1 and the amounts failing due in a similar manner in
respect of the total of the amounts in respect of the following
items, that is to say, in the said Format 2 under "Assets" item
B. II and under "Liabilities" item C and in respect, individually,
of the following items, that is to say, in the said Format 2
under "Assets" items B. II. 2 and 3 and under "Liabilities" items
C. 1, 2, 6 and 7.
(3) Notwithstanding section 7 of this Act, a company treated as a
medium-sized company pursuant to section 8 (1) of this Act may
annex to the annual return in relation to the company a copy of
the profit and loss account drawn up in accordance with subsection
(1) of this section. COMPANIES (AMENDMENT) ACT 1986 – SECT 12
Exemptions in relation to notes to accounts for small companies and
medium-sized companies.
12.-(1) The provisions of the Schedule to this Act (other than
paragraphs 24, 26, 27, 33, 34 and 44) in relation to the
information required to be given by way of a note to the accounts
of a company shall not apply to the accounts annexed to the annual
return of a company treated as a small company pursuant to section
8 (1) of this Act.
(2) Paragraph 41 of the Schedule to this Act does not apply as
respects such information as aforesaid to a company treated as a
medium-sized company pursuant to the said section 8 (1). COMPANIES (AMENDMENT) ACT 1986 – SECT 13
Information to be included in directors’ report.
13.-The report of the directors of a company under section 158 of
the Principal Act shall contain, in addition to the information
specified in that section, the following information:
( a ) a fair review of the development of the business of the
company and of its subsidiaries, if any, during the financial year
ending with the relevant balance sheet date;
( b ) particulars of any important events affecting the company or
any of its subsidiaries, if any, which have occurred since the end
of that year;
( c ) an indication of likely future developments in the business
of the company and of its subsidiaries, if any, and
( d ) an indication of the activities, if any, of the company and
its subsidiaries, if any, in the field of research and development. COMPANIES (AMENDMENT) ACT 1986 – SECT 14
Information to be included in directors’ report regarding, acquisition
by company of own shares.
14.-Where, in any financial year of a company, shares in the
company-
( a ) are acquired by the company by forfeiture or surrender in
lieu of forfeiture, or
( b ) are acquired by the company in pursuance of section 41 of
the Act of 1983, or
( c ) are acquired by another person in the circumstances specified
in paragraph (c)or (d)of section 43 (1) of that Act, or
( d ) are made subject to a lien or other charge that is taken
(whether expressly or otherwise) by the company and is permitted by
paragraph (a), (c) or (d)of section 44 (2) of that Act,
the directors’ report with respect to that financial year of the
company shall state-
(i) the number and nominal value of any shares of the company
acquired as aforesaid by the company, the number and nominal value
of any shares of the company acquired as aforesaid by another
person, and the number and nominal value of any shares charged as
aforesaid, respectively,
(ii) the maximum number and nominal value of any shares which,
having been acquired as aforesaid (whether or not during that year)
by the company or by another person or charged as aforesaid
(whether or not during that year) are held at any time by the
company or that other person during that year,
(iii) the number and nominal value of any shares acquired as
aforesaid (whether or not during that year) by the company or
another person or charged as aforesaid (whether or not during that
year) which are disposed of by the company or that other person or
cancelled by the company during that year,
(iv) where the number and nominal value of the shares of any
particular description are stated in pursuance of any of the
preceding paragraphs, the percentage of the called-up share capital
of the company which shares of that description represent,
(v) in the case of a charge as aforesaid, the amount of the
charge in each case, and
(vi) in the case of a disposal as aforesaid for money or money’s
worth, the amount or value of the consideration in each case. COMPANIES (AMENDMENT) ACT 1986 – SECT 15
Consideration by auditors of consistency of directors’ report with
company’s accounts.
15.-It shall be the duty of the auditors of a company, in
preparing the report in relation to the company required by section
163 of the Principal Act, to consider whether the information given
in the report of the directors of the company relating to the
financial year concerned is consistent with the accounts prepared by
the company for that year and they shall state in the report
whether, in their opinion, such information is consistent with those
accounts. COMPANIES (AMENDMENT) ACT 1986 – SECT 16
Publication of information regarding subsidiary and associated
companies.
16.-(1) Subject to the provisions of this section, where at the end
35 of the financial year of a company, the company-
( a ) has a subsidiary, or
( b ) is beneficially entitled to more than 20 per cent. in
nominal value of the shares carrying voting rights (other than
voting rights which arise only in specified circumstances) in another
body corporate that is not its subsidiary (in this section referred
to as "an associated company") or to more than 20 per cent. in
nominal value of the allotted share capital of another body
corporate that is not its subsidiary (in this section also referred
to as "an associated company"),
a note shall be included in the accounts of the company for that
year annexed to the annual return distinguishing between the
subsidiaries and the associated companies and giving the following
information in relation to them-
(i) the name and registered office of each subsidiary or associated
company and the nature of the business carried on by it,
(ii) the identity of each class of shares held by the company in
each subsidiary or associated company and the proportion of the
nominal value of the allotted shares in the subsidiary or associated
company of each such class represented by the shares of that class
held by the company,
(iii) the aggregate amount of the capital and reserves of each
subsidiary or associated company as at the end of the financial
year of the subsidiary or associated company ending with or last
before the end of the financial year of the company to which the
accounts relate, and
(iv) the profit or loss of the subsidiary or associated company for
the financial year thereof mentioned in paragraph (iii) of this
subsection.
(2) Paragraphs (iii) and (iv) of subsection (1) of this section
shall not apply-
( a ) in respect of a subsidiary of a company, if the company is
exempt from preparing group accounts by virtue of Section 150(2) (a)
of The Principal Act or the company prepares group accounts and
either-
(i) the accounts of the subsidiary are included in the group
accounts, or
(ii) the investment of the company in the shares of the subsidiary
is included in or in a note to the company’s accounts by way of
the equity method of valuation,
or
( b ) in respect of an associated company of a company if the
investment of the company in the shares of the associated company
is included in or in a note to the company’s accounts by way of
the equity method of valuation,
or
( c ) if-
(i) the subsidiary or the associated company is not required to
publish its accounts, and
(ii) the shares held by the company in the subsidiary or the
associated company do not amount to at least one-half in nominal
value of the allotted share capital of the subsidiary or the
associated company,
or
( d ) if the information specified in subsection (1) of this
section is not material.
( 3 ) ( a ) Subject to paragraph (b) of this subsection, the
information specified in subsection (1) of this section may, in lieu
of being stated in a note to the accounts of the company concerned
for any particular financial year of the company, be given in a
statement in writing signed by a director, and the secretary, of
the company and annexed to the first annual return made by the
company next after its accounts for that year are laid before the
annual general meeting of the company if, in the opinion of the
directors of the company, compliance with subsection (1) of this
section would require a note to the accounts of the company of
excessive length.
( b ) Paragraph (a) of this subsection shall not apply in relation
to information concerning a subsidiary or associated company of a
company (referred to subsequently in this paragraph as the
"second-mentioned company") if the financial state of the subsidiary
or associated company, as disclosed by its accounts, has, in the
opinion of the directors of the second-mentioned company, a
substantial effect on the profit or loss, or the amount of the
assets, of the second-mentioned company and its subsidiaries.
( c ) A copy of a statement annexed, pursuant to paragraph (a) of
this subsection, to the annual return referred to in that subsection
made by a company shall be certified both by a director, and the
secretary, of the company to be a true copy of such statement.
(4) For the purpose of this section, shares in a company being a
subsidiary or associated company of another company, shall be treated
as being held, or as not being held, by that other company if
they would, by virtue of section 155 (3) of the Principal Act be
treated as being held or, as the case may be, as not being held
by that other company for the purpose of determining whether the
first-mentioned company is that other company’s subsidiary.
(5) Subsections (4) and (5) of section 158 of the Principal Act
shall not apply to a company to which this section applies.
(6) In addition to applying to a company, this section applies to
a body corporate which, if it were a company, would be a
subsidiary or an associated company. COMPANIES (AMENDMENT) ACT 1986 – SECT 17
Exemption for subsidiaries form section 7.
17.-(1) Where a private company is a subsidiary of another body
corporate formed and registered in a Member State of the European
Communities, or would be a subsidiary of that other body corporate
if that other body corporate were a company, the company shall, as
respects any particular financial year of the company, stand exempted
from the provisions of section 7 (other than subsection (1) (b)) of
this Act if, but only if, the following conditions are fulfilled:
( a ) every person who is a shareholder of the company on the
date of the holding of the next annual general meeting of the
company after the end of that financial year, shall declare his
consent to the exemption,
( b ) there is in force in respect of the whole of that
financial year an irrevocable guarantee by the other body corporate
of the liabilities of the company referred to in section 5 (c) of
this Act in respect of that financial year and the company has
notified in writing every person referred to in paragraph (a) of
this subsection of the guarantee,
( c ) the annual accounts of the company for that financial year
are consolidated in the group accounts prepared by the body
corporate and the exemption of the company under this section is
disclosed in a note to the group accounts,
( d ) a notice stating that the company has availed of the
exemption under this section in respect of that financial year and
a copy of the guarantee and notification referred to in paragraph
(b) of this subsection, together with a declaration by the company
in writing that paragraph (a) of this subsection has been complied
with in relation to the exemption, is annexed to the annual return
for that financial year made by the company under The Principal Act
to the registrar of companies,
( e ) the group accounts of the other body corporate are drawn up
as far as possible in accordance with the requirements of the
Fourth Council Directive*Council Directive No. 78/660/EEC (OJ No. L
222 of 14.8.1978).*, and
( f ) the group accounts of the other body corporate are annexed
to the annual return aforesaid and are audited in accordance with
Article 51.1 of the said Fourth Council Directive.
(2) The Minister may make such orders (if any) as may be necessary
for the purpose of enabling this section to have full effect. COMPANIES (AMENDMENT) ACT 1986 – SECT 18
Provisions in relation to documents delivered to registrar of
companies.
18.-(1) A copy of a balance sheet and profit and loss account of
a company prepared pursuant to any of the provisions of sections 10
to 12 of this Act and annexed to the annual return required by
The Principal Act to be made by the company to the registrar of
companies shall be signed as required by section 156 of the
Principal Act and the copy of the balance sheet so annexed shall
contain the statement required by subsection (2) of this section in
a position immediately above the signatures appended pursuant to the
said section 156 and shall be accompanied by a copy of the report
of the auditors of the company in relation to the accounts of the
company under subsection (3) of this section.
(2) A copy of a balance sheet of a company prepared pursuant to
any of the provisions of sections 10 to 12 of this Act and
annexed to the said annual return shall contain a statement by the
directors that-
( a ) they have relied on specified exemptions contained in the
said sections 10 to 12, and
( b ) they have done so on the ground that the company is
entitled to the benefit of those exemptions as a small company or
(as the case may be) as a medium-sized company.
(3) A copy of a balance sheet or profit and loss account of a
company prepared pursuant to any of the provisions of sections 10
to 12 of this Act which is delivered to the registrar of companies
need not be accompanied by the report of the auditors under section
7 (1) (a) of this Act on those accounts, but shall be accompanied
by a special report of the auditors containing-
( a ) a copy of the report made by the auditors of the company
under subsection (4) of this section on those accounts, and
( b ) a copy of the report of the auditors under section 163 of
the Principal Act.
(4) Where the directors of a company propose to annex to the
annual return accounts for any accounting period prepared pursuant to
any of the provisions of sections 10 to 12 of this Act and the
auditors of the company are satisfied that the directors of the
company are entitled, for that purpose, to rely on exemptions
specified in sections 10 to 12 of this Act and that the accounts
have been properly prepared pursuant to those provisions, it shall
be the duty of the auditors of the company to provide the
directors of the company with a report in writing stating that, in
the opinion of the auditors of the company, the directors of the
company are entitled to annex those accounts to the annual return
and that the accounts so annexed are properly prepared as aforesaid.
(5) A copy of the report of the auditors of a company under
subsection (3) of this section furnished to the registrar of
companies pursuant to this section shall be certified both by a
director, and the secretary, of the company to be a true copy of
such report. COMPANIES (AMENDMENT) ACT 1986 – SECT 19
Publication of full or abbreviated accounts.
19.-(1) Where a company publishes its full accounts, it shall also
publish with those accounts any report in relation to those accounts
specified in subsection (3) of section 18 of this Act and, if the
auditors of the company have refused to provide the directors of
the company with a report under subsection (4) of that section, an
indication of the refusal.
(2) Where a company publishes abbreviated accounts relating to any
financial year, it shall also publish a statement indicating-
( a ) that the accounts are not the accounts copies of which are
required by this Act to be annexed to the annual return,
( b ) whether the copies of the accounts so required to be so
annexed have in fact been so annexed,
( c ) whether the auditors of the company have made a report
under section 163 of the Principal Act in respect of the accounts
of the company which relate to any financial year with which the
abbreviated accounts purport to deal,
( d ) whether the report of the auditors under the said section
163 as to the matters mentioned in the Seventh Schedule to The
Principal Act contained any qualifications.
(3) Where a company publishes abbreviated accounts, it shall not
publish with those accounts any such report of the auditors as is
mentioned in subsection (2) (c) of this section.
(4) In this section-
"abbreviated accounts", in relation to a company, means any balance
sheet or profit and loss account, or summary or abstract of a
balance sheet or profit and loss account, relating to a financial
year of the company which is published by the company otherwise
than as part of the full accounts of the company for that
financial year and, in relation to a holding company, includes an
account in any form purporting to be a balance sheet or profit and
loss account, or a summary or abstract of a balance sheet or
profit and loss account, of the group consisting of the holding
company and its subsidiaries;
"full accounts", in relation to a company, means accounts of the
company prepared in accordance with section 3 or sections 10 to 12
of this Act and, except in the case of a company which is exempt
by virtue of the said section 10 from annexing a copy of such
report to the annual return, the report of the directors of the
company specified in section 158 (1) of the Principal Act;
"publish", in relation to a document, includes issue, circulate or
otherwise make it available for public inspection in a manner
calculated to invite the public generally, or any class of members
of the public, to read the document, and cognate words shall he
construed accordingly.
by the Minister under this section, may be fixed therefor either
generally or with reference to any particular purpose or provision
and different days may be so fixed for different purposes and
different provisions.
( 5 ) ( a ) Subject to paragraph (b) of this subsection, each
provision of this Act shall apply as respects the accounts of a
company, and the report by the directors of a company specified in
section 158 of the Principal Act, for each financial year of the
company beginning or ending, as may be specified by the Minister by
order, after such date after the commencement of the provision as
may be specified by the Minister by order.
( b ) Paragraph (a) of this subsection does not apply in relation
to subsection (7) or (8) of section 8 of this Act.
SCHEDULE
FORM AND CONTENTS OF ACCOUNTS
PART I
THE REQUIRED FORMATS FOR ACCOUNTS
Preliminary
1. References in this Part of this Schedule to the items listed in
any of the formats set out in this Part are references to those
items read together with any notes following the formats which apply
to any of those items.
2. A number in brackets following any item in, or any heading to,
any of the formats set out in this Part is a reference to the
note of that number in the notes following the formats.
3. In the notes following the formats-
( a ) the heading of each note gives the required heading or
subheading for the item to which it applies and a reference to any
letters and numbers assigned to that item in the formats set out
in this Part; and
( b ) references to a numbered format are references to the
balance sheet format or (as the case may require) to the profit
and loss account format of that number set out in this Part.
BALANCE SHEET FORMATS
Format 1
A. Fixed Assets
I. Intangible assets
1. Development costs
2. Concessions, patents, licences, trade marks and similar rights and
assets (1)
3. Goodwill (2)
4. Payments on account
II. Tangible assets
1. Land and buildings
2. Plant and machinery
3. Fixtures, fittings, tools and equipment
4. Payments on account and assets in course of construction
III. Financial assets
1. Shares in group companies
2. Loans to group companies
3. Shares in related companies
4. Loans to related companies
5. Other investments other than loans
6. Other loans
7. Own shares (3)
B. Current Assets
I. Stocks
1. Raw materials and consumables
2. Work in progress
3. Finished goods and goods for resale
4. Payments on account
II. Debtors (4)
1. Trade debtors
2. Amounts owed by group companies
3. Amounts owed by related companies
4. Other debtors
5. Called up share capital not paid
6. Prepayments and accrued income
III. Investments
1. Shares in group companies
2. Own shares (3)
3. Other investments
IV. Cash at bank and in hand
C. Creditors: amounts falling due within one year
1. Debenture loans (5)
2. Bank loans and overdrafts
3. Payments received on account (6)
4. Trade creditors
5. Bills of exchange payable
6. Amounts owed to group companies
7. Amounts owed to related companies
8. Other creditors including tax and social welfare (7)
9. Accruals and deferred income (8)
D. Net current assets (liabilities)
E. Total assets less current liabilities
F. Creditors: Amounts falling due after more than one year
1. Debenture loans (5)
2. Bank loans and overdrafts
3. Payments received on account (6)
4. Trade creditors
5. Bills of exchange payable
6. Amounts owed to group companies
7. Amounts owed to related companies
8. Other creditors including tax and social welfare (7)
9. Accruals and deferred income (8)
G. Provisions for liabilities and charges
1. Pensions and similar obligations
2. Taxation, including deferred taxation
3. Other provisions
H. Capital and reserves
I. Called up share capital (9)
II. Share premium account
III. Revaluation reserve
IV. Other reserves
1. The capital redemption reserve fund
2. Reserves for own shares
3. Reserves provided for by the articles of association
4. Other reserves
V. Profit and loss account
BALANCE SHEET FORMATS
Format 2
ASSETS
A. Fixed Assets
I. Intangible assets
1. Development costs
2. Concessions, patents, licences, trade marks and similar rights and
assets (1)
3. Goodwill (2)
4. Payments on account
II. Tangible assets
1. Land and buildings
2. Plant and machinery
3. Fixtures, fittings, tools and equipment
4. Payments on account and assets in course of construction
III. Financial assets
1. Shares in group companies
2. Loans to group companies
3. Shares in related companies
4. Loans to related companies
5. Other investments other than loans
6. Other loans
7. Own shares (3)
B. Current Assets
I. Stocks
1. Raw materials and consumables
2. Work in progress
3. Finished goods and goods for resale
4. Payments on account
II. Debtors (4)
1. Trade debtors
2. Amounts owed by group companies
3. Amounts owed by related companies
4. Other debtors
5. Called up share capital not paid
6. Prepayments and accrued income
III. Investments
1. Shares in group companies
2. Own shares (3)
3. Other investments
IV. Cash at bank and in hand
LIABILITIES
A. Capital and reserves
I. Called up share capital (9)
II. Share premium account
III. Revaluation reserve
IV. Other reserves
1. The capital redemption reserve fund
2. Reserve for own shares
3. Reserves provided for by the articles of association
4. Other reserves
V. Profit and loss account
B. Provisions for liabilities and charges
1. Pensions and similar obligations
2. Taxation, including deferred taxation
3. Other provisions
C. Creditors (10)
1. Debenture loans (5)
2. Bank loans and overdrafts
3. Payments received on account (6)
4. Trade creditors
5. Bills of exchange payable
6. Amounts owed to group companies
7. Amounts owed to related companies
8. Other creditors including tax and social welfare (7)
9. Accruals and deferred income (8)
NOTES ON THE BALANCE SHEET FORMATS
(1) Concessions, patents, licences, trade marks and similar rights
and assets
(Formats 1 and 2, items A. I. 2)
Amounts in respect of assets shall only be included in a company’s
balance sheet under this item if either-
( a ) the assets were acquired for valuable consideration and are
not required to be shown under goodwill, or
( b ) the assets in question were created by the company itself.
(2) Goodwill
(Formats 1 and 2, items A. I. 3)
Amounts representing goodwill shall only be included to the extent
that the goodwill was acquired for valuable consideration.
(3) Own shares
(Formats 1 and 2, items A. III. 7 and B. III. 2)
The nominal value of the shares held shall be shown separately.
(4) Debtors
(Formats 1 and 2, items B. II. 1 to 6)
The amount failing due after more than one year shall be shown
separately for each item included under debtors.
(5) Debenture loans
(Format 1, item C.1 and F.1 and Format 2, item C.1)
The amount of any convertible loans shall be shown separately.
(6) Payments received on account
(Format 1, items C.3 and F.3 and Format 2, item C.3)
Payments received on account of orders shall be shown for each of
these items insofar as they are not shown as deductions from
stocks.
(7) Other creditors including tax and social welfare
(Format 1, items C.8 and F.8 and Format 2, item C.8)
The amount for creditors in respect of taxation and social welfare
shall be shown separately from the amount for other creditors and
in respect of taxation there shall be stated separately the amounts
included in respect of income tax payable on emoluments to which
Chapter IV of Part V of the Income Tax Act, 1967, applies, any
other income tax, corporation tax, capital gains tax, value added tax
and any other tax.
(8) Accruals and deferred income (Format 1, items C. 9 and F. 9
and Format 2, item C. 9)
The amount in respect of Government grants, that is to say, grants
made by or on behalf of the Government, included in this item
shall be shown separately in a note to the accounts unless it is
shown separately in the balance sheet.
(9) Called up share capital
(Format 1, item H. I and Format 2, item A. I)
The amount of allotted share capital and the amount of called up
share capital which has been paid up shall be shown separately.
(10) Creditors
(Format 2, items C.1 to 9)
Amounts falling due within one year and after one year shall be
shown separately for each of these items and their aggregate shall
be shown separately for all of these items.
PROFIT AND LOSS ACCOUNT FORMATS
Format 1 (14)
1. Turnover
2. Cost of Sales (11)
3. Gross Profit or Loss
4. Distribution costs (11)
5. Administrative expenses (11)
6. Other operating income
7. Income from shares in group companies
8. Income from shares in related companies
9. Income from other financial assets (12)
10. Other interest receivable and similar income (12)
11. Amounts written off financial assets and investments held as
current assets
12. Interest payable and similar charges (13)
13. Tax on profit or loss on ordinary activities
14. Profit or loss on ordinary activities after taxation
15. Extraordinary income
16. Extraordinary charges
17. Extraordinary profit or loss
18. Tax on extraordinary profit or loss
19. Other taxes not shown under the above items
20. Profit or loss for the financial year
PROFIT AND LOSS ACCOUNT FORMATS
Format 2
1. Turnover
2. Variation in stocks of finished goods and in work in progress
3. Own work capitalised
4. Other operating income
5. ( a ) Raw materials and consumables
( b ) Other external charges
6. Staff costs:
( a ) Wages and salaries
( b ) Social welfare costs
( c ) Other pension costs
7. ( a ) Depreciation and other amounts written off tangible and
intangible fixed assets
( b ) Exceptional amounts written off current assets
8. Other operating charges
9. Income from shares in group companies
10. Income from shares in related companies
11. Income from other financial assets (12)
12. Other interest receivable and similar income (12)
13. Amounts written off financial assets and investments held as
current assets
14. Interest payable and similar charges (13)
15. Tax on profit or loss on ordinary activities
16. Profit or loss on ordinary activities after taxation
17. Extraordinary income
18. Extraordinary charges
19. Extraordinary profit or loss
20. Tax on extraordinary profit or loss
21. Other taxes not shown under the above items
22. Profit or loss for the financial year
PROFIT AND LOSS ACCOUNT FORMATS
Format 3 (14)
A. Charges
1. Cost of sales (11)
2. Distribution costs (11)
3. Administrative expenses (11)
4. Amounts written off financial assets and investments held as
current assets
5. Interest payable and similar charges (13)
6. Tax on profit or loss on ordinary activities
7. Profit or loss on ordinary activities after taxation
8. Extraordinary charges
9. Tax on extraordinary profit or loss
10. Other taxes not shown under the above items
11. Profit or loss for the financial year
B. Income
1. Turnover
2. Other operating income
3. Income from shares in group companies
4. Income from shares in related companies
5. Income from other financial assets (12)
6. Other interest receivable and similar income (12)
7. Profit or loss on ordinary activities after taxation
8. Extraordinary income
9. Profit or loss for the financial year
PROFIT AND LOSS ACCOUNT FORMATS
Format 4
A. Charges
1. Reduction in stocks of finished goods and in work in progress
2. ( a ) Raw materials and consumables
( b ) Other external charges
3. Staff costs:
( a ) Wages and salaries
( b ) Social welfare costs
( c ) Other pension costs
4. ( a ) Depreciation and other amounts written off tangible and
intangible fixed assets
( b ) Exceptional amounts written off current assets
5. Other operating charges
6. Amounts written off financial assets and investments held as
current assets
7. Interest payable and similar charges (13)
8. Tax on profit or loss on ordinary activities
9. Profit or loss on ordinary activities after taxation
10. Extraordinary charges
11. Tax on extraordinary profit or loss
12. Other taxes not shown under the above items
13. Profit or loss for the financial year
B. Income
1. Turnover
2. Increase in stocks of finished goods and in work in progress
3. Own work capitalised
4. Other operating income
5. Income from shares in group companies
6. Income from shares in related companies
7. Income from other financial assets (12)
8. Other interest receivable and similar income (12)
9. Profit or loss on ordinary activities after taxation
10. Extraordinary income
11. Profit or loss for the financial year
NOTES ON THE PROFIT AND LOSS ACCOUNT FORMATS
(11) Cost of sales: Distribution costs: Administrative expenses
(Format 1, items 2, 4 and 5 and Format 3, items A. 1, 2 and 3)
These items shall be stated after taking into account any necessary
provisions for depreciation or diminution in value of assets.
(12) Income from other financial assets: other interest receivable
and similar income
(Format 1, items 9 and 10; Format 2, items 11 and 12; Format 3,
items B. 5 and 6; Format 4, items B. 7 and 8)
Income and interest derived from group companies shall be shown
separately from income and interest derived from other sources.
(13) Interest payable and similar charges
(Format 1, item 12; Format 2, item 14; Format 3, item A. 5;
Format 4, item A. 7)
The amount payable to group companies shall be shown separately.
(14) Formats 1 and 3
The amounts of any provisions for depreciation and diminution in
value of tangible and intangible fixed assets falling to be shown
under items 7 (a) and A. 4 (a), respectively, in Formats 2 and 4
shall be disclosed in a note to the accounts in any case where
the profit and loss account is prepared by reference to Format 1
or Format 3.
PART II
HISTORICAL COST RULES IN RELATION TO THE DRAWING UP OF ACCOUNTS
Preliminary
4. Subject to Part III of this Schedule, the amounts to be
included in respect of all items shown in a company’s accounts
shall be determined in accordance with the rules set out in the
following paragraphs of this Part.
FIXED ASSETS
General rules
5. Subject to any provision for depreciation or diminution in value
made in accordance with paragraph 6 or 7 of this Schedule the
amount to be included in respect of any fixed asset shall be its
purchase price or production cost.
6. In the case of any fixed asset which has a limited useful
economic life, the amount of-
( a ) its purchase price or production cost, or
( b ) where it is estimated that any such asset will have a
residual value at the end of the period of its useful economic
life, its purchase price or production cost less that estimated
residual value,
shall be reduced by provisions for depreciation calculated to write
off that amount systematically over the period of the asset’s useful
economic life.
7. (1) Where a financial asset of a description falling to be
included under item A. III of either of the balance sheet formats
set out in Part I of this Schedule has diminished in value,
provisions for diminution in value may be made in respect of it
and the amount to be included in respect of it may be reduced
accordingly; and any such provisions which are not shown separately
in the profit and loss account shall be disclosed (either separately
or in aggregate) in a note to the accounts.
(2) Provisions for diminution in value shall be made in respect of
any fixed asset which has diminished in value if the reduction in
its value is expected to be permanent (whether its useful economic
life is limited or not) and the amount to be included in respect
of it shall be reduced accordingly; and any such provisions which
are not shown separately in the profit and loss account shall be
disclosed (either separately or in aggregate) in a note to the
accounts.
(3) Where the reasons for which any provision was made in
accordance with subparagraph (1) or (2) of this paragraph have
ceased to apply to any extent, that provision shall be written back
to the extent that it is no longer necessary; and any amounts
written back in accordance with this subparagraph which are not
shown i

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