Building Societies (Accounts and Related Provisions) Regulations 1992
| Jurisdiction | UK Non-devolved |
| Citation | SI 1992/359 |
1992 No. 359
BUILDING SOCIETIES
The Building Societies (Accounts and Related Provisions) Regulations 1992
Made 17th February 1992
Laid before Parliament 6th March 1992
Coming into force 1st January 1993
The Building Societies Commission, with the consent of the Treasury, in exercise of the powers conferred on it by sections 73, 74(3) and (6), 75(1) and 76(3) of the Building Societies Act 19861, and of all other powers enabling it in that behalf, hereby makes the following Regulations:
Citation and commencement
1. These Regulations may be cited as the Building Societies (Accounts and Related Provisions) Regulations 1992 and shall come into force on 1st January 1993
Interpretation
2.—(1) In these Regulations—
“the Act” means the Building Societies Act 1986;
“associated body” shall be taken as including bodies corporate given such a meaning by section 18 of the Act together with all bodies corporate in which such associated bodies hold shares or membership rights;
“associated undertaking” has the meaning given to that phrase by paragraph 20 of Schedule 4A to the Companies Act 19852;
“group” means a society and its subsidiary undertakings;
“group accounts society” means a society the directors of which are obliged by section 72 of the Act (duty of directors to prepare annual accounts) to prepare group accounts;
“particular account” means an income and expenditure account, a balance sheet, or a statement of the source and application of funds;
“subsidiary undertaking” means a subsidiary undertaking of a group accounts society with which the group accounts of the society are required by section 72 of the Act3to deal;
“single accounts society” means a society which is not a group accounts society; and “society” means a building society.
(2) Nothing in these Regulations shall be taken to imply that the carrying on by a society of any activity provision for the recording of which is contained in these Regulations is, by virtue of that provision, within the powers of that society.
Annual accounts
3.—(1) In respect of the annual accounts of any single accounts society—
(a)
(a) every income and expenditure account shall be prepared in the format set out in Part I of Schedule 1,
(b)
(b) every balance sheet shall be prepared in the format set out in Part I of Schedule 2, and
(c)
(c) every statement of the source and application of funds shall be prepared in the format set out in Part I of Schedule 3,
in each case in accordance with the relevant provisions, and every such document shall, subject to the following paragraphs of this regulation, be prepared in the order and under the headings and subheadings in the format applicable to it.
(2) In respect of the annual accounts of any group accounts society—
(a)
(a) the provisions of this regulation shall apply subject to the provisions of Regulation 4, the supplementary provisions of which shall also have effect in relation to those accounts, and
(b)
(b) within those accounts—
(i) every income and expenditure account relating to the society shall be prepared in the format set out in Part I of Schedule 1,
(ii) every income and expenditure account relating to the society and its subsidiary undertakings shall be prepared on a consolidated basis in the format set out in Part II of Schedule 1,
(iii) every balance sheet relating to the society shall be prepared in the format set out in Part I of Schedule 2,
(iv) every balance sheet relating to the society and its subsidiary undertakings shall be prepared on a consolidated basis in the format set out in Part II of Schedule 2, and
(v)
(v) every statement of the source and application of funds of the society and its subsidiary undertakings shall be prepared on a consolidated basis in the format set out in Part II of Schedule 3, and if such a statement is also prepared in relation to the society alone, that further statement shall be prepared in the format set out in Part I thereof,
and in each case in accordance with the relevant provisions, and every such document shall, subject to the following paragraphs of this regulation, be prepared in the order and under the headings and subheadings in the format applicable to it.
(3) Paragraphs (1) and (2) are not to be read as—
(a)
(a) requiring the heading or subheading for any item to be distinguished by any letter or number assigned to that item in the format in which it appears, or
(b)
(b) prohibiting the showing of any item in a particular account in greater detail (with or without additional subdivisions) than is required by the format for that particular account, or
(c)
(c) prohibiting the insertion of additional items, provided that their contents are not specifically covered by any of the items prescribed in the formats.
(4) Items preceded by a lower case letter or by a Roman numeral in any format set out in Schedules 1, 2 or 3 may be combined in a society’s annual accounts for any financial year if either:
(a)
(a) their individual amounts are not material to assessing—
(i) in respect of an income and expenditure account, the income and expenditure of the society (or, as the case may be, the society and its subsidiary undertakings) for that year, and
(ii) in respect of a balance sheet, the state of affairs of the society (or, as the case may be, the society and its subsidiary undertakings) as at the end of that year, and
(iii) in respect of a statement of the source and application of funds, the manner in which the business of the society (or, as the case may be, the society and its subsidiary undertakings) has been financed and in which its (or their) financial resources have been used during that year, or
(b)
(b) their combination facilitates that assessment,
but where subparagraph (b) applies, the individual amounts of any items so combined shall be disclosed in a note to the annual accounts.
(5) Subject to paragraph (6), a heading or subheading for an item contained in any format set out in Schedules 1, 2 or 3 shall not be included if there is no amount to be shown for that item in respect of the financial year to which the annual accounts relate (and a total need not be included if, as a result of this paragraph, it would be composed of a single item).
(6) For the purpose of comparing particular accounts with those for the preceding financial year—
(a)
(a) in respect of every item shown in a balance sheet, income and expenditure account and statement of the source and application of funds, the correspond ing amount for the preceding financial year shall be shown,
(b)
(b) where 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 annual accounts relate, the former amount shall be adjusted and particulars of the adjustment and the reasons for it shall be disclosed in a note to the annual accounts, and
(c)
(c) paragraph (5) does not apply in any case where an amount can be shown for the item to which the heading or subheading relates in respect of the preceding financial year; in such a case that amount shall be shown under the heading or subheading required for that item.
(7) In this regulation, “the relevant provisions” means, in relation to any particular account, Part III of the Schedule in question, Parts I and II of which contain formats of that particular account.
Group accounts-supplementary provisions
4.—(1) The annual accounts of a group accounts society shall comply with the further provisions of Schedule 4 as to the form and content of the consolidated income and expenditure account, the balance sheet, the statement of the source and application of funds and the additional information to be provided by way of notes to the accounts.
(2) Subject to the exceptions authorised or required by this regulation, all the subsidiary undertakings of the society shall be included in the consolidated income and expenditure account, the balance sheet and the statement of the source and application of funds, as required by Regulation 3(2), and in the notes to the accounts in respect of the society and its subsidiary undertakings in combination, as required by Regulation 5(2)(b).
(3) A subsidiary undertaking may be excluded from the requirements of paragraph (2) if compliance with those requirements is not material for the purpose of giving a true and fair view for the society and its subsidiary undertakings as a whole, of the matters set out in subsections (2), (3) and (4) of section 73 of the Act.
(4) If a society has two or more subsidiary undertakings, they do not qualify under paragraph (3) for exclusion from the requirements of paragraph (2) if taken as a whole they are material for the purpose enumerated in paragraph (3).
(5) A subsidiary undertaking may also be excluded from the requirements of paragraph (2) where—
(a)
(a) severe long-term restrictions substantially hinder the exercise by the society of its rights over the assets or management of the subsidiary undertaking;
(b)
(b) the information necessary for the preparation of group accounts cannot be obtained without disproportionate expense or undue delay; or
(c)
(c) the interest of the society is held exclusively with a view to subsequent resale and the subsidiary undertaking has not been previously included in the group accounts prepared by the society.
(6) The references in subparagraphs (a) and (c) of paragraph (5) to the rights of the society and to the interest of the society are, respectively to rights and interests held by or attributed to the society for the purposes of section 258 of the Companies Act 19854(definition of “parent undertaking” and “subsidiary undertaking”) as applied to building societies by The Building Societies Act 1986 (Modifications) Order 19915in the absence of which it would not be the parent body.
(7) A subsidiary undertaking shall be...
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