SCHEDULES
SCHEDULE 13 Loan relationships: amendment of transitional provisions
Adjustments in the case of chargeable assets
6
In paragraph 11 (adjustments in the case of chargeable assets), for sub-paragraphs (2) to (4) there shall be substituted the following sub-paragraphs—
2
Those amounts are—
a
the notional closing value of the relationship as at 31st March 1996; and
b
the amount which would be taken on a computation made—
i
in accordance with an authorised accruals basis of accounting, and
ii
on the assumption that such a basis of accounting had always been used as respects that relationship,
to represent the accrued value of the loan relationship in question on 1st April 1996.
3
Where there is a difference between the amounts mentioned in sub-paragraph (2) above, that difference shall be brought into account—
a
where the amount mentioned in paragraph (a) of that sub-paragraph is the smaller, as a credit given for the purposes of this Chapter for the accounting period in which the company ceases to be a party to the relationship; and
b
in any other case, as a debit so given.