Building Societies (Accounts and Annual Return) Regulations 1976
| Jurisdiction | UK Non-devolved |
| Citation | SI 1976/1935 |
1976 No. 1935
BUILDING SOCIETIES
The Building Societies (Accounts and Annual Return) Regulations 197615thNovember 1976
26thNovember 1976
31stDecember 1976
The Chief Registrar of Friendly Societies, with the consent of the Treasury, in exercise of the powers conferred upon him by sections 78(2), 88(3) and 91(2) of the Building Societies Act 1962(a), and of all other powers enabling him in that behalf, hereby makes the following Regulations:—
Citation, Commencement and Interpretation
1.—(1) These Regulations may be cited as the Building Societies (Accounts and Annual Return) Regulations 1976, and shall come into operation on 31st December 1976.
(2) The Interpretation Act 1889(b) shall apply to the interpretation of these Regulations as it applies to the interpretation of an Act of Parliament.
Revenue and Appropriation Account and Balance Sheet
2. The revenue and appropriation account and the balance sheet of a building society as respects a financial year of the society ending on or after 31st December 1977 shall, with such adaptations, additions or omissions as may be necessary to comply with section 78(1) of the Building Societies Act 1962, be in the forms set out in Schedule I to these Regulations and shall contain the particulars therein set out (except that any heading therein may be omitted if the entries in respect of such heading would be "Nil") and the particulars specified in regulations 4 to 10 of these Regulations.
3.—(1) For the purposes of these Regulations unless the context otherwise requires—
(a) "provision" means, subject to paragraph (2) hereof, any amount written off or retained by way of providing for depreciation, renewals or diminution in value of assets or retained by way of providing for any known liability of which the amount cannot be determined with substantial accuracy;
(b) "reserve" does not, subject as aforesaid, include any amount written off or retained by way of providing for depreciation, renewals or diminution in value of assets or retained by way of providing for any known liability or any sum set aside for the purpose of being used to prevent any undue fluctuations in the charges for taxation;
(a) 1962 c. 37.
(b) 1889 c. 63.
and in this paragraph "liability" includes all liabilities in respect of expenditure contracted for and all disputed or contingent liabilities.
(2) Where—
(a) any amount written off or retained by way of providing for depreciation, renewals or diminution in value of assets; or
(b) any amount retained by way of providing for any known liability;
is in excess of that which in the opinion of the board of directors is reasonably necessary for the purpose, the excess shall be treated for the purposes of these Regulations as a reserve and not a provision.
(3) The amount to be shown in relation to the heading "Mortgages" in the balance sheet shall be the amount due or outstanding in respect of advances secured on mortgage less any provision for anticipated losses thereon.
4. The following particulars shall be shown separately in the revenue and appropriation account—
(a) the amount, if material, of any profit or loss on realisation of investments less any corporation tax relating thereto;
(b) the amount transferred from general reserve; and
(c) the amount transferred to or from any reserve set aside for a particular purpose.
5.—(1) If an amount is charged to revenue by way of provision for depreciation or diminution in value of assets, and an amount is also so charged by way of provision for renewal of those assets, the last-mentioned amount shall be shown separately.
(2) If the amount charged to revenue by way of provision for depreciation or diminution in value of fixed assets has been determined otherwise than by reference to the amount of those assets as determined for making up the balance sheet, that fact shall be stated.
6. The following particulars shall be stated by way of note to the revenue and appropriation account, if not otherwise shown—
(a) the amount of the remuneration of auditors, including any sums paid to the auditors in respect of their expenses;
(b) the financial year of the society, or the part of such year, in which the interest accrued in respect of which the amount shown in relation to the heading "Income tax on interest" is computed;
(c) the basis on which the charge for corporation tax is computed;
(d) the amount of any interest on bank loans and overdrafts;
(e) the amount, if material, of any transaction of an exceptional or nonrecurrent nature;
(f) the effect, if material, of any change in the basis of accounting;
(g) any amount applied in writing up or down the amount at which investments are determined for making up the balance sheet;
(h) the corresponding amounts for the immediately preceding financial year for all items shown in the revenue and appropriation account.
7.—(1) Subject to and in accordance with the provisions of this regulation there shall be stated by way of note to the revenue and appropriation account—
(a) the aggregate amount of the directors' emoluments;
(b) the aggregate amount of directors' or past directors' pensions; and
(c) the aggregate amount of any compensation to directors or past directors in respect of loss of office.
(2) The amount to be stated under paragraph 1(a) of this regulation—
(a) shall include any emoluments paid to or receivable by any person in respect of his services as director of the society or in respect of his services, while director of the society, in connection with the management of the affairs of the society; and
(b) shall distinguish between the emoluments in respect of services as director of the society and other emoluments;
and for the purposes of this regulation the expression "emoluments" in relation to a director includes fees and percentages, any sums paid by way of expenses allowance in so far as those sums are charged to United Kingdom income tax, any contribution paid in respect of him under any pension scheme and the estimated money value of any other benefits received by him otherwise than in cash.
(3) The amount to be stated under paragraph 1(b) of this regulation—
(a) shall not include any pension paid or receivable under a pension scheme if the scheme is such that the contributions thereunder are substantially adequate for the maintenance of the scheme, but save as aforesaid shall include any pension paid or receivable in respect of any such services of a director or past director of the society as are mentioned in the preceding paragraph of this regulation, whether to or by him or, on his nomination or by virtue of dependence on or other connection with him, to or by any other person; and
(b) shall distinguish between pensions in respect of...
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