Friendly Societies Act 1992

[F169E.Duty to prepare group accountsU.K.

(1)If at the end of a financial year an incorporated friendly society has subsidiary undertakings, the committee of management, in addition to preparing individual accounts for the year, must prepare consolidated accounts for the year for the society and those undertakings taken as a whole, except as provided by regulations under subsection (7).

Those accounts are referred to in this Part as the society’s “group accounts”.

(2)Certain friendly societies are obliged by [F2section 403(1) of the Companies Act 2006] to prepare their group accounts in accordance with [F3UK-adopted international accounting standards] (“IAS group accounts”).

(3)The group accounts of other friendly societies may be prepared –

(a)in accordance with section 69F (“Friendly Societies Act group accounts”), or

(b)in accordance with [F4UK-adopted international accounting standards] (“IAS group accounts”).

This subsection is subject to the following provisions of this section and section 69I (consistency of accounts).

[F5(3A)The group accounts of a friendly society that is a charity must be Friendly Societies Act group accounts.]

(4)After the first financial year in which the committee of management of a friendly society prepares IAS group accounts (“the first IAS year”), all subsequent group accounts of the society must be prepared in accordance with [F6UK-adopted international accounting standards] unless there is a relevant change of circumstance. [F7This is subject to subsection (5A).]

(5)There is a relevant change of circumstance if, at any time during or after the first IAS year—

(a)the society becomes a subsidiary undertaking of another undertaking and accounts for that undertaking and its subsidiary undertakings (taken as a whole) are not prepared in accordance with [F8UK-adopted international accounting standards],

(b)the society ceases to be a society with securities admitted to trading on a [F9UK] regulated market, or

(c)a parent undertaking of the society ceases to be an undertaking with securities admitted to trading on a [F10UK] regulated market.

F11...

[F12(5A)After a financial year in which the committee of management of a friendly society prepares IAS group accounts, the committee of management may change to preparing Friendly Societies Act group accounts for a reason other than a relevant change of circumstance provided it has not changed to Friendly Societies Act group accounts in the period of five years preceding the first day of that financial year.

(5B)In calculating the five year period for the purpose of subsection (5A), no account should be taken of a change due to a relevant change of circumstance.]

(6)If, having changed to preparing Friendly Societies Act group accounts F13..., the committee of management again prepares IAS group accounts for the society, subsections (4) and (5) apply again as if the first financial year for which such accounts are again prepared were the first IAS year.

(7)The Treasury may by regulations exempt specified descriptions of incorporated friendly societies with subsidiaries from any duty to prepare group accounts.

(8)Regulations under subsection (7) may exempt societies by reference to any criterion and may make different provision for different descriptions of societies.

[F14(9)In this subsection “UK regulated market” has the meaning given in Article 2.1.13A of Regulation (EU) No. 600/2014 of the European Parliament and of the Council of 15 May 2014 and amending Regulation (EU) No. 648/2012.]]