[F160.—(1) Any information required in the case of a company by the following provisions of this Part of this Schedule must be given by way of a note to the accounts.
(2) These notes must be presented in the order in which, where relevant, the items to which they relate are presented in the balance sheet and in the profit and loss account.]
Textual Amendments
F1Sch. 3 para. 60 substituted (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), 36(2) (with reg. 3)
61. The accounting policies adopted by the company in determining the amounts to be included in respect of items shown in the balance sheet and in determining the profit or loss of the company must be stated (including such policies with respect to the depreciation and diminution in value of assets).
62. It must be stated whether the accounts have been prepared in accordance with applicable accounting standards and particulars of any material departure from those standards and the reasons for it must be given.U.K.
63. Where any sums originally denominated in foreign currencies have been brought into account under any items shown in the balance sheet or profit and loss account format, the basis on which those sums have been translated into sterling (or the currency in which the accounts are drawn up) must be stated.
64. There must be stated—
(a)any amount set aside or proposed to be set aside to, or withdrawn or proposed to be withdrawn from, reserves,
(b)the aggregate amount of dividends paid in the financial year (other than those for which a liability existed at the immediately preceding balance sheet date),
(c)the aggregate amount of dividends that the company is liable to pay at the balance sheet date, and
(d)the aggregate amount of dividends that are proposed before the date of approval of the accounts, and not otherwise disclosed under sub-paragraph (b) or (c).
65.—(1) Where shares of more than one class have been allotted, the number and aggregate nominal value of shares of each class allotted must be given.
(2) In the case of any part of the allotted share capital that consists of redeemable shares, the following information must be given—
(a)the earliest and latest dates on which the company has power to redeem those shares,
(b)whether those shares must be redeemed in any event or are liable to be redeemed at the option of the company or of the shareholder, and
(c)whether any (and, if so, what) premium is payable on redemption.
66. If the company has allotted any shares during the financial year, the following information must be given—U.K.
(a)the classes of shares allotted, and
(b)as respects each class of shares, the number allotted, their aggregate nominal value and the consideration received by the company for the allotment.
67.—(1) With respect to any contingent right to the allotment of shares in the company the following particulars must be given—U.K.
(a)the number, description and amount of the shares in relation to which the right is exercisable,
(b)the period during which it is exercisable, and
(c)the price to be paid for the shares allotted.
(2) In sub-paragraph (1) “” means any option to subscribe for shares and any other right to require the allotment of shares to any person whether arising on the conversion into shares of securities of any other description or otherwise.
68.—(1) If the company has issued any debentures during the financial year to which the accounts relate, the following information must be given—U.K.
(a)the classes of debentures issued, and
(b)as respects each class of debentures, the amount issued and the consideration received by the company for the issue.
(2) Where any of the company's debentures are held by a nominee of or trustee for the company, the nominal amount of the debentures and the amount at which they are stated in the accounting records kept by the company in accordance with section 386 of the 2006 Act (duty to keep accounting records) must be stated.
69.—(1) In respect of any assets of the company included in assets items B (intangible assets), C.I (land and buildings) and C.II (investments in group undertakings and participating interests) in the company's balance sheet the following information must be given by reference to each such item—
(a)the appropriate amounts in respect of those assets included in the item as at the date of the beginning of the financial year and as at the balance sheet date respectively,
(b)the effect on any amount included in assets item B in respect of those assets of—
(i)any determination during that year of the value to be ascribed to any of those assets in accordance with paragraph 23,
(ii)acquisitions during that year of any assets,
(iii)disposals during that year of any assets, and
(iv)any transfers of assets of the company to and from the item during that year.
(2) The reference in sub-paragraph (1)(a) to the appropriate amounts in respect of any assets (included in an assets item) as at any date there mentioned is a reference to amounts representing the aggregate amounts determined, as at that date, in respect of assets falling to be included under the item on either of the following bases—
(a)on the basis of cost (determined in accordance with paragraphs 45 and 46), or
(b)on any basis permitted by paragraph 22 or 23 ,
(leaving out of account in either case any provisions for depreciation or diminution in value).
(3) In addition, in respect of any assets of the company included in any assets item in the company's balance sheet, there must be stated (by reference to each such item)—
(a)the cumulative amount of provisions for depreciation or diminution in value of those assets included under the item as at each date mentioned in sub-paragraph (1)(a),
(b)the amount of any such provisions made in respect of the financial year,
(c)the amount of any adjustments made in respect of any such provisions during that year in consequence of the disposal of any of those assets, and
(d)the amount of any other adjustments made in respect of any such provisions during that year.
70. Where any assets of the company (other than listed investments) are included under any item shown in the company's balance sheet at an amount determined on any basis mentioned in paragraph 22 or 23, the following information must be given—U.K.
(a)the years (so far as they are known to the directors) in which the assets were severally valued and the several values, and
(b)in the case of assets that have been valued during the financial year, the names of the persons who valued them or particulars of their qualifications for doing so and (whichever is stated) the bases of valuation used by them.
71. In relation to any amount which is included under assets item C.I (land and buildings) there must be stated—U.K.
(a)how much of that amount is ascribable to land of freehold tenure and how much to land of leasehold tenure, and
(b)how much of the amount ascribable to land of leasehold tenure is ascribable to land held on long lease and how much to land held on short lease.
72. In respect of the amount of each item which is shown in the company's balance sheet under assets item C (investments) there must be stated how much of that amount is ascribable to listed investments.
[F273.—(1) This paragraph applies where financial instruments or other assets have been valued in accordance with, as appropriate, paragraph 30, 32 or 33.
(2) There must be stated—
(a)the significant assumptions underlying the valuation models and techniques used to determine the fair value of the financial instruments or other assets,
(b)in the case of financial instruments, their purchase price, the items affected and the basis of valuation,
(c)for each category of financial instrument or other asset, the fair value of the assets in that category and the changes in value—
(i)included directly in the profit and loss account, or
(ii)credited to or (as the case may be) debited from the fair value reserve,
in respect of those assets, and
(c)for each class of derivatives, the extent and nature of the instruments, including significant terms and conditions that may affect the amount, timing and certainty of future cash flows.
(3) Where any amount is transferred to or from the fair value reserve during the financial year, there must be stated in tabular form—
(a)the amount of the reserve as at the date of the beginning of the financial year and as at the balance sheet date respectively,
(b)the amount transferred to or from the reserve during the year, and
(c)the source and application respectively of the amounts so transferred.]
Textual Amendments
F2Sch. 3 para. 73 substituted (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), 36(3) (with reg. 3)
74. Where the company has derivatives that it has not included at fair value, there must be stated for each class of such derivatives—U.K.
(a)the fair value of the derivatives in that class, if such a value can be determined in accordance with paragraph 31, and
(b)the extent and nature of the derivatives.
75.—(1) This paragraph applies if—U.K.
(a)the company has financial fixed assets that could be included at fair value by virtue of paragraph 30,
(b)the amount at which those assets are included under any item in the company's accounts is in excess of their fair value, and
(c)the company has not made provision for diminution in value of those assets in accordance with paragraph 38(2) of this Schedule.
(2) There must be stated—
(a)the amount at which either the individual assets or appropriate groupings of those individual assets are included in the company's accounts,
(b)the fair value of those assets or groupings, and
(c)the reasons for not making a provision for diminution in value of those assets, including the nature of the evidence that provides the basis for the belief that the amount at which they are stated in the accounts will be recovered.
76.—(1) This paragraph applies where the amounts to be included in a company's accounts in respect of investment property or living animals and plants have been determined in accordance with paragraph 33.
(2) The balance sheet items affected and the basis of valuation adopted in determining the amounts of the assets in question in the case of each such item must be disclosed in a note to the accounts.
(3) In the case of investment property, for each balance sheet item affected there must be shown, either separately in the balance sheet or in a note to the accounts—
(a)the comparable amounts determined according to the historical cost accounting rules, or
(b)the differences between those amounts and the corresponding amounts actually shown in the balance sheet in respect of that item.
(4) In sub-paragraph (3), references in relation to any item to the comparable amounts determined in accordance with that sub-paragraph are to—
(a)the aggregate amount which would be required to be shown in respect of that item if the amounts to be included in respect of all the assets covered by that item were determined according to the historical cost accounting rules, and
(b)the aggregate amount of the cumulative provisions for depreciation or diminution in value which would be permitted or required in determining those amounts according to those rules.
77.—(1) This paragraph applies where any amount is transferred—
(a)to or from any reserves,
(b)to any provisions for other risks, or
(c)from any provisions for other risks otherwise than for the purpose for which the provision was established,
and the reserves or provisions are or would but for paragraph 3(1) be shown as separate items in the company's balance sheet.
(2) The following information must be given in respect of the aggregate of reserves or provisions included in the same item—
(a)the amount of the reserves or provisions as at the date of the beginning of the financial year and as at the balance sheet date respectively,
(b)any amounts transferred to or from the reserves or provisions during that year, and
(c)the source and application respectively of any amounts so transferred.
(3) Particulars must be given of each provision included in liabilities item E.3 (other provisions) in the company's balance sheet in any case where the amount of that provision is material.
78. The amount of any provision for deferred taxation must be stated separately from the amount of any provision for other taxation.
79.—(1) In respect of each item shown under “creditors” in the company's balance sheet there must be stated the aggregate of the following amounts—
(a)the amount of any debts included under that item which are payable or repayable otherwise than by instalments and fall due for payment or repayment after the end of the period of five years beginning with the day next following the end of the financial year, and
(b)in the case of any debts so included which are payable or repayable by instalments, the amount of any instalments which fall due for payment after the end of that period.
(2) Subject to sub-paragraph (3), in relation to each debt falling to be taken into account under sub-paragraph (1), the terms of payment or repayment and the rate of any interest payable on the debt must be stated.
(3) If the number of debts is such that, in the opinion of the directors, compliance with sub-paragraph (2) would result in a statement of excessive length, it is sufficient to give a general indication of the terms of payment or repayment and the rates of any interest payable on the debts.
(4) In respect of each item shown under “creditors” in the company's balance sheet there must be stated—
(a)the aggregate amount of any debts included under that item in respect of which any security has been given by the company, and
(b)an indication of the nature of the securities so given.
(5) References above in this paragraph to an item shown under “creditors” in the company's balance sheet include references, where amounts falling due to creditors within one year and after more than one year are distinguished in the balance sheet—
(a)in a case within sub-paragraph (1), to an item shown under the latter of those categories, and
(b)in a case within sub-paragraph (4), to an item shown under either of those categories.
References to items shown under “creditors” include references to items which would but for paragraph 3(1)(b) be shown under that heading.
80. If any fixed cumulative dividends on the company's shares are in arrear, there must be stated—U.K.
(a)the amount of the arrears, and
(b)the period for which the dividends or, if there is more than one class, each class of them are in arrear.
[F381.—(1) Particulars must be given of any charge on the assets of the company to secure the liabilities of any other person including the amount secured.
(2) Particulars and the total amount of any financial commitments, guarantees and contingencies (excluding those which arise out of insurance contracts) that are not included in the balance sheet must be disclosed.
(3) An indication of the nature and form of any valuable security given by the company in respect of commitments, guarantees and contingencies within sub-paragraph (2) must be given.
(4) The total amount of any commitments within sub-paragraph (2) concerning pensions must be separately disclosed.
(5) Particulars must be given of pension commitments which are included in the balance sheet.
(6) Where any commitment within sub-paragraph (4) or (5) relates wholly or partly to pensions payable to past directors of the company separate particulars must be given of that commitment.
(7) The total amount of any commitments, guarantees and contingencies within sub-paragraph (2) which are undertaken on behalf of or for the benefit of—
(a)any parent undertaking or fellow subsidiary undertaking of the company,
(b)any subsidiary undertaking of the company, or
(c)any undertaking in which the company has a participating interest
must be separately stated and those within each of paragraphs (a), (b) and (c) must also be stated separately from those within any other of those paragraphs.]
Textual Amendments
F3Sch. 3 para. 81 substituted (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), 36(4) (with reg. 3)
82.—(1) Particulars must be given of any case where the cost of any asset is for the first time determined under paragraph 47.
(2) Where any outstanding loans made under the authority of section 682(2)(b), (c) or (d) of the 2006 Act (various cases of financial assistance by a company for purchase of its own shares) are included under any item shown in the company's balance sheet, the aggregate amount of those loans must be disclosed for each item in question.
Marginal Citations
M1See regulation 6(2) for exemption for companies falling within section 408 of the 2006 Act (individual profit and loss account where group accounts prepared).
83.—(1) Subject to sub-paragraph (2), there must be stated the amount of the interest on or any similar charges in respect of—
(a)bank loans and overdrafts, and
(b)loans of any other kind made to the company.
(2) Sub-paragraph (1) does not apply to interest or charges on loans to the company from group undertakings, but, with that exception, it applies to interest or charges on all loans, whether made on the security of debentures or not.
84.—(1) Particulars must be given of any special circumstances which affect liability in respect of taxation of profits, income or capital gains for the financial year or liability in respect of taxation of profits, income or capital gains for succeeding financial years.
(2) The following amounts must be stated—
(a)the amount of the charge for United Kingdom corporation tax,
(b)if that amount would have been greater but for relief from double taxation, the amount which it would have been but for such relief,
(c)the amount of the charge for United Kingdom income tax, and
(d)the amount of the charge for taxation imposed outside the United Kingdom of profits, income and (so far as charged to revenue) capital gains.
Those amounts must be stated separately in respect of each of the amounts which is shown under the following items in the profit and loss account, that is to say item III.9 (tax on profit or loss on ordinary activities) and item III.14 (tax on extraordinary profit or loss).
85.—(1) As regards general business a company must disclose—
(a)gross premiums written,
(b)gross premiums earned,
(c)gross claims incurred,
(d)gross operating expenses, and
(e)the reinsurance balance.
(2) The amounts required to be disclosed by sub-paragraph (1) must be broken down between direct insurance and reinsurance acceptances, if reinsurance acceptances amount to 10 per cent or more of gross premiums written.
(3) Subject to sub-paragraph (4), the amounts required to be disclosed by sub-paragraphs (1) and (2) with respect to direct insurance must be further broken down into the following groups of classes—
(a)accident and health,
(b)motor (third party liability),
(c)motor (other classes),
(d)marine, aviation and transport,
(e)fire and other damage to property,
(f)third-party liability,
(g)credit and suretyship,
(h)legal expenses,
(i)assistance, and
(j)miscellaneous,
where the amount of the gross premiums written in direct insurance for each such group exceeds 10 million Euros.
(4) The company must in any event disclose the amounts relating to the three largest groups of classes in its business.
86.—(1) As regards long-term business, the company must disclose—U.K.
(a)gross premiums written, and
(b)the reinsurance balance.
(2) Subject to sub-paragraph (3)—
(a)gross premiums written must be broken down between those written by way of direct insurance and those written by way of reinsurance, and
(b)gross premiums written by way of direct insurance must be broken down—
(i)between individual premiums and premiums under group contracts,
(ii)between periodic premiums and single premiums, and
(iii)between premiums from non-participating contracts, premiums from participating contracts and premiums from contracts where the investment risk is borne by policyholders.
(3) Disclosure of any amount referred to in sub-paragraph (2)(a) or (2)(b)(i), (ii) or (iii) is not required if it does not exceed 10 per cent of the gross premiums written or (as the case may be) of the gross premiums written by way of direct insurance.
87.—(1) Subject to sub-paragraph (2), there must be disclosed as regards both general and long- term business the total gross direct insurance premiums resulting from contracts concluded by the company—U.K.
[F4(a)in the country in which its head office is located, and]
F5(b). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(c)in other countries.
(2) Disclosure of any amount referred to in sub-paragraph (1) is not required if it does not exceed 5 per cent of total gross premiums.
Textual Amendments
F4Sch. 3 para. 87(1)(a) substituted (31.12.2020 with effect in relation to financial years beginning on or after IP completion day) by The Accounts and Reports (Amendment) (EU Exit) Regulations 2019 (S.I. 2019/145), regs. 1(2)(b), 2, Sch. 3 para. 4(b)(i) (with reg. 7(2)) (as amended by S.I. 2020/523, regs. 1(2), 10, 11); 2020 c. 1, Sch. 5 para. 1(1)
F5Sch. 3 para. 87(1)(b) omitted (31.12.2020 with effect in relation to financial years beginning on or after IP completion day) by virtue of The Accounts and Reports (Amendment) (EU Exit) Regulations 2019 (S.I. 2019/145), regs. 1(2)(b), 2, Sch. 3 para. 4(b)(ii) (with reg. 7(2)) (as amended by S.I. 2020/523, regs. 1(2), 10, 11); 2020 c. 1, Sch. 5 para. 1(1)
88. There must be disclosed the total amount of commissions for direct insurance business accounted for in the financial year, including acquisition, renewal, collection and portfolio management commissions.
89.—(1) Where any amount relating to any preceding financial year is included in any item in the profit and loss account, the effect must be stated.
[F6(2) The amount, nature and effect of any individual items of income or expenditure which are of exceptional size or incidence must be stated.]
Textual Amendments
F6Sch. 3 para. 89(2) substituted for Sch. 3 para. 89(2)(3) (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), 36(5) (with reg. 3)
90.—(1) Particulars may be given of transactions which the company has entered into with related parties, and must be given if such transactions are material and have not been concluded under normal market conditions.
(2) The particulars of transactions required to be disclosed by sub-paragraph (1) must include—
(a)the amount of such transactions,
(b)the nature of the related party relationship, and
(c)other information about the transactions necessary for an understanding of the financial position of the company.
(3) Information about individual transactions may be aggregated according to their nature, except where separate information is necessary for an understanding of the effects of related party transactions on the financial position of the company.
(4) Particulars need not be given of transactions entered into between two or more members of a group, provided that any subsidiary undertaking which is a party to the transaction is wholly-owned by such a member.
(5) In this paragraph, “” has the same meaning as in [F7UK-adopted international accounting standards].
Textual Amendments
F7Words in Sch. 3 para. 90(5) substituted (31.12.2020) by The International Accounting Standards and European Public Limited-Liability Company (Amendment etc.) (EU Exit) Regulations 2019 (S.I. 2019/685), reg. 1(2), Sch. 1 para. 57(4)(b) (with reg. 1(3)(4)) (as amended by S.I. 2020/523, regs. 1(2), 22); 2020 c. 1, Sch. 5 para. 1(1)
90A. The nature and financial effect of material events arising after the balance sheet date which are not reflected in the profit and loss account of balance sheet must be stated.]
Textual Amendments
F8Sch. 3 paras. 90A, 90B 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), 36(6) (with reg. 3)
90B. Particulars must be given of the proposed appropriation of profit or treatment of loss or, where applicable, particulars of the actual appropriation of the profits or treatment of the losses.]
Textual Amendments
F8Sch. 3 paras. 90A, 90B 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), 36(6) (with reg. 3)