
1 

(1) These Regulations may be cited as the 
Industrial and Provident Societies (Group Accounts) Regulations 1969
and shall come into operation on 11th August 1969.
(2) The 
Interpretation Act 1889 shall apply to the
interpretation of these Regulations as it applies to the interpretation of
an Act of Parliament.
2 

(1) Subject to 
paragraph (2) of this regulation, the group
accounts of a society shall comprise—
(a) a consolidated balance sheet which deals
with the state of affairs of the society and the subsidiaries to be dealt
with in the group accounts;
(b) a consolidated revenue account which
deals with the income and expenditure of the society and those subsidiaries.

(2) If in the opinion of the committee of
the society it is better for the purpose
(a) of presenting the same or equivalent
information about the state of affairs and income and expenditure of the society
and those subsidiaries; and
(b) of so presenting it that it may be readily
appreciated by the society's members;the group accounts may be prepared in a form other than that required
by paragraph (1)
of this regulation, and in particular may consist of more than one set of
consolidated accounts dealing respectively with the society and one group
of subsidiaries and with other groups of subsidiaries or of separate accounts
dealing with each of the subsidiaries to be dealt with in the group accounts,
or of statements expanding the information about those subsidiaries in the
society's own accounts, or any combination of those forms.
3 
The consolidated balance sheet and income and
expenditure account shall combine the information contained in the separate
balance sheets and income and expenditure accounts of the society and of the
subsidiaries dealt with by the consolidated accounts, but with such adjustments,
if any, as the committee of the society thinks necessary.
4 
Group accounts, if prepared in accordance with 
paragraph (1) of regulation 2, shall comply
with the requirements of the Schedule to these Regulations so far as applicable
thereto or, if not so prepared, shall give the same or equivalent information.

5 
Where, pursuant to 
paragraph (2) of regulation 2, a balance sheet
is prepared dealing with the society and one or more of its subsidiaries,
but not with all the subsidiaries required to be dealt with in the group accounts,
there shall be set out in the balance sheet separately from all other assets
and liabilities the aggregate amount of assets consisting of shares in or
amounts owing from those subsidiaries required to be dealt with in the group
accounts but not dealt with by the balance sheet, and the aggregate amount
of indebtedness to those subsidiaries.
6 
In these Regulations—
 “committee” has the meaning assigned to it by 
section 74 of the Industrial and Provident
Societies Act 1965;
 “society”
means a society registered or deemed to be registered
under the said Act of 1965;
 “subsidiaries”
means companies or societies which are subsidiaries
within the meaning of section 15
of the Friendly and Industrial and Provident Societies
Act 1968;
 “income and expenditure”
 includes, in relation to a subsidiary
which is a company, profit and loss.
S. D. Musson
Chief Registrar of Friendly Societies
Dated 28th July 1969
SCHEDULE
PART I
1 
The balance sheet shall, subject to 
paragraph 15 of this Schedule, comply with
the requirements set out in paragraphs
2 to 8 of this Schedule.
2 
The amount paid up on the shares of the society
and, in the case of nonwithdrawable shares, the amount of the issued shares,
shall be stated.
3 

(1) The reserves, provisions, liabilities
and assets shall be classified under headings appropriate to the business
of the society and its subsidiaries:Provided that—
(a) where the amount of any class is not
material, it may be included under the same heading as some other class; and

(b) where any assets of one class are not
separable from assets of another class, those assets may be included under
the same heading.
(2) Such particulars of the  liabilities
and assets shall be stated as are necessary to disclose their general nature.

(3) Fixed assets, current assets and assets
that are neither fixed nor current shall be separately identified.
(4) The method or methods used to arrive
at the amount of the fixed assets under each heading shall be stated.
4 
There shall be shown under separate headings—

(a) the preliminary expenses, so far as they
are not written off;
(b) the aggregate amounts respectively of
reserves and provisions, where they are material (other than provisions for
depreciation, renewals or diminution in value of assets);
(c) the aggregate amounts respectively of
quoted and unquoted investments;
(d) the aggregate amount of bank loans and
overdrafts;
(e) the aggregate amount of loans (not being
bank loans or overdrafts) made to the society or its subsidiaries.
5 
If an amount is set aside for the purpose of
its being used to prevent undue fluctuations in charges for taxation, it shall
be stated.
6 
Where any liability of the society or its subsidiaries
is secured otherwise than by operation of law on any assets of the society
or its subsidiaries, the fact that the liability is so secured shall be stated,
but it shall not be necessary to specify the assets on which the liability
is secured.
7 
Subject to paragraph
8 of this Schedule, the following matters shall
be stated by way of note to the balance sheet, or in a statement or report
annexed thereto, if not otherwise shown—
(a) where the replacement of fixed assets
has been provided for wholly or partly—
(i) by making provision for renewals and
charging the cost of replacements against the provision so made; or
(ii) by charging the cost of replacement
direct to revenue;the fact that such provision has been made;
(b) where the amount of fixed assets (other
than unquoted investments) is arrived at by reference to a valuation, the
years (so far as they are known to the committee of the society) in which
the assets were severally valued and the several values, and, in the case
of assets that have been valued during the year of account, 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;
(c) if there are included amongst the fixed
assets (other than investments) assets that have been acquired during the
year of account, the aggregate amount of the assets acquired as determined
for the purpose of making up that balance sheet;
(d) if during the year of account any fixed
assets (other than investments) included in the balance sheet made up with
respect to the immediately preceding year of account have been disposed of
or destroyed, the aggregate amount thereof for the purpose of making up that
balance sheet;
(e) of the amount of fixed assets consisting
of land, how much is ascribable to land of freehold tenure and how much to
land of leasehold tenure;
(f) if the amount carried forward for stock
in trade or work in progress is material for the appreciation by the members
of the society of the state of affairs of the society and its subsidiaries,
or of the income or expenditure of the society and its subsidiaries for the
year of account, the manner in which that amount has been computed;
(g) if in the opinion of the committee of
the society any of the current assets and unquoted investments have not a
value on realisation in the ordinary course of the business of the society
or its subsidiaries at least equal to the amount at which they are stated,
the fact that the committee is of that opinion;
(h) the aggregate market value of the quoted
investments where it differs from the amount of the investments as stated,
and the stock exchange value of any investments of which the market value
is shown (whether separately or not) and is taken as being higher than their
stock exchange value;
(i) where the amounts of the separate reserves
or of the provisions (other than provisions for depreciation, renewals, or
diminution in value of assets) as compared with the amounts at the end of
the immediately preceding year of account show any material increases or decreases,
the sources from which the increases have been derived and how the amounts
of any decreases have been applied;
(j) the general nature of any contingent
liability not provided for, and, where practicable, the estimated amount of
that contingent liability, if it is material;
(k) where practicable, the aggregate amount
or estimated amount, if it is material, of—
(i) contracts for capital expenditure, so
far as not provided for, and
(ii) capital expenditure authorised by the
committee of the society or any of its subsidiaries which has not been contracted
for;
(l) the basis on which the amount, if any,
set aside for United Kingdom corporation tax is computed;
(m) the names of the subsidiaries dealt with
in the group accounts, and the names of the subsidiaries not so dealt with
and why they are not so dealt with;
(n) the corresponding amounts at the end
of the immediately preceding year of account for all items shown in the balance
sheet.
8 
The matters referred to in 
sub-paragraphs (d), (f), 
(i) and (n) of paragraph 7
are not required to be stated by way of note to the balance sheet, or otherwise,
where the balance sheet is drawn up as at a date on or before 30th December
1970.
PART II
9 
The revenue account shall, subject to 
paragraph 15 of this Schedule, comply with
the requirements set out in paragraphs
10 to 14 of this Schedule.
10 
There shall be shown—
(a) the amount charged to revenue by way
of provision for depreciation, renewals or diminution in value of fixed assets;

(b) the amount, if material, charged to revenue
in respect of sums payable in respect of the hire of plant and machinery;

(c) the amount of the charge to revenue for
United Kingdom corporation tax;
(d) the amount of the interest on bank loans,
overdrafts and loans of other kinds made to the society or its subsidiaries
(whether on the security of debentures or not);
(e) the amounts respectively of income from
quoted investments and income from unquoted investments;
(f) if a substantial part of the revenue
for the year of account consists of rents from land, the amount thereof (after
deduction of ground rents, rates and other out-goings).
11 
If, in the case of any assets in whose case
an amount is charged to revenue by way of provision for depreciation or diminution
in value, an amount is also charged by way of provision for renewal thereof,
the last mentioned amount shall be shown separately.
12 
The amount of the fees and expenses paid to
the members of the committee of management of the society shall be shown under
a separate heading.
13 
The amount of the remuneration of the auditors
of the society and of its subsidiaries, including any sums paid in respect
of their expenses, shall be shown under a separate heading.
14 
The following matters shall be stated by way
of note to the revenue account, or in a statement or report annexed thereto,
if not otherwise shown
(a) the turnover for the year of account,
except in so far as it is attributable to the business of banking or discounting,
and the method by which the turnover stated is arrived at;
(b) if depreciation or replacement of fixed
assets is provided for by some method other than a depreciation charge or
provision for renewals, or is not provided for, the method by which it is
provided for or the fact that it is not provided for, as the case may be;

(c) the basis on which the charge for United
Kingdom corporation tax is computed;
(d) any special circumstances which affect
liability in respect of taxation or profits, income or capital gains for the
year of account or liability in respect of taxation of profits, income or
capital gains for succeeding years of account;
(e) any material respects in which any items
shown in the revenue account are affected—
(i) by transactions of a sort not usually
undertaken by the society and its subsidiaries or otherwise by circumstances
of an exceptional or non-recurrent nature; and
(ii) by any change in the basis of accounting;

(f) except in the case of a revenue account
relating to a year of account ending on or before 30th December 1970, the
corresponding amounts at the end of the immediately preceding year of account
for all items shown in the revenue account.
PART III
15 
A society which is an insurance company to
which the Insurance Companies Act 1958
applies and which conducts as its main business the business of insurance
within the meaning of that Act shall not be subject to the following requirements
of this Schedule, that is to say—
(a) as respects 
Part I of this Schedule, 
sub-paragraphs (1), (3)
and (4) of paragraph 3, 
sub-paragraphs (b) and (c) of paragraph
4 and sub-paragraphs
(a), (b), 
(c), (d), 
(e), (g), 
(h), (i) and 
(j) of paragraph 7;
(b) as respects 
Part II of this Schedule, 
sub-paragraphs (a), (b), 
(e) and (f) of paragraph 10,
and sub-paragraph (b) of paragraph 14:

but, where in its balance sheet reserves or provisions (other
than provisions for depreciation, renewals or diminution in value of assets)
are not stated separately, any heading stating an amount arrived at after
taking into account a reserve or such a provision shall be so framed or marked
as to indicate that fact, and its revenue account shall indicate by appropriate
words the manner in which the amount stated for the society's profit and loss
has been arrived at,
PART IV
16 

(1) For the purposes of this Schedule, unless
the context otherwise requires—
(a) “provision”
 means any amount written off or retained
by way of providing for depreciation, renewals or diminution in value of assets
or retained by way of providing for any known liability of which the amount
cannot be determined with substantial accuracy;
(b) “reserve”
 does not include any amount written
off or retained by way of providing for depreciation, renewals or diminution
in value of assets or retained by way of providing for any known liability
or any sum set aside for the purpose of its being used to prevent undue fluctuations
in charges for taxation;and in this paragraph “liability”
 includes all liabilities in respect
of expenditure contracted for and all disputed or contingent liabilities.

(2) Where—
(a) any amount written off or retained by
way of providing for depreciation, renewals or diminution in value of assets;
or
(b) any amount retained by way of providing
for any known liability;is in excess of that which in the opinion of the members of the
committee of management is reasonably necessary for the purpose, the excess
shall be treated for the purposes of this Schedule as a reserve and not as
a provision.
17 
For the purposes aforesaid, 
“quoted investment” means 
an investment as respects which there has been granted a quotation or permission
to deal on a recognised stock exchange, or any stock exchange of repute outside
Great Britain, and “unquoted
investment” shall be construed
accordingly.
18 
For the purposes aforesaid, 
“subsidiaries” means subsidiaries
which are to be dealt with in the group accounts, and “year of account” in relation to a
subsidiary means, where the year of account of the subsidiary
does not coincide with that of the society, the year of account of the subsidiary
ending with or last before the year of account of the society.

19 
For the purposes of 
paragraph 12 of this Schedule, “expenses” includes
any sum paid by way of expenses allowance and the estimated money value of
any other benefits received by members of the committee of management other
than in cash in so far as those sums are benefits and charged to United Kingdom
income tax.
20 
In the application of this Schedule to Scotland “land of freehold tenure” means land in respect of which the society or a subsidiary is the proprietor
of the dominium utile or, in the case of land not held on feudal tenure, is
the owner; “land of leasehold
tenure” means land of which the
society or a subsidiary is the tenant under a lease: and the reference to
ground-rents, rates and other outgoings includes a reference to feu-duty and
ground annual.