Accounting principlesU.K.
19. The amount of any item must be determined on a prudent basis, and in particular—
(a)only profits realised at the balance sheet date are to be included in the profit and loss account, F1...
(b)all liabilities which have arisen in respect of the financial year to which the accounts relate or a previous financial year must be taken into account, including those which only become apparent between the balance sheet date and the date on which it is signed on behalf of the board of directors in accordance with section 414 of the 2006 Act (approval and signing of accounts), [F2and]
[F3(c)all provisions for diminution of value must be recognised, whether the result of the financial year is a profit or a loss.]
Textual Amendments
F1Word in Sch. 2 para. 19 omitted (with effect in accordance with reg. 2(2)-(5) of the amending S.I.) by virtue of The Companies, Partnerships and Groups (Accounts and Reports) Regulations 2015 (S.I. 2015/980), regs. 2(1), 32(2)(b)(i) (with reg. 3)
F2Word in Sch. 2 para. 19 inserted (with effect in accordance with reg. 2(2)-(5) of the amending S.I.) by The Companies, Partnerships and Groups (Accounts and Reports) Regulations 2015 (S.I. 2015/980), regs. 2(1), 32(2)(b)(ii) (with reg. 3)
F3Sch. 2 para. 19 inserted (with effect in accordance with reg. 2(2)-(5) of the amending S.I.) by The Companies, Partnerships and Groups (Accounts and Reports) Regulations 2015 (S.I. 2015/980), regs. 2(1), 32(2)(b)(iii) (with reg. 3)