SCHEDULE 6ACCOUNTING PRINCIPLES AND RULES

PART VMISCELLANEOUS AND SUPPLEMENTAL

Excess of money owed over value received as an asset item25

1

Where the amount repayable on any debt owed by a society is greater than the value of the consideration received in the transaction giving rise to the debt, the amount of the difference may be treated as an asset.

2

Where any such amount is so treated:

a

it must be written off by reasonable amounts each year and must be completely written off before repayments of the debt; and

b

if the current amount is not shown as a separate item in the society’s balance sheet it must be disclosed in a note to the accounts.