The Friendly Societies Act 1992 (Accounts) (Amendment) Order 2020

• Citation: S.I. 2020/782
• Sections: 3

Section 1 Citation, commencement and interpretation

(1) This Order may be cited as the Friendly Societies Act 1992 (Accounts) (Amendment) Order 2020.

(2) This Order comes into force on 1st October 2020.

(3) In this Order, “the 1992 Act” means the Friendly Societies Act 1992.

Section 2 Individual accounts

(1) Section 69A of the 1992 Act (duty to prepare individual accounts) is amended as follows.

(2) In subsection (2), for “subsection (3)”, substitute “subsections (2A) and (3),”.

(3) After subsection (2) insert—

(2A) The individual accounts of—

(a) a friendly society that is a charity, or

(b) a registered branch of a friendly society that is a charity,

must be Friendly Societies Act individual accounts.

(4) At the end of subsection (3) insert—

This is subject to subsection (4A).

(5) In subsection (4), after paragraph (a) insert—

(aa) the society or branch ceases to be a subsidiary undertaking,

(6) After subsection (4) insert—

(4A) After a financial year in which the committee of management of a friendly society or registered branch prepares IAS individual accounts, the committee of management may change to preparing Friendly Societies Act individual accounts for a reason other than a relevant change of circumstance provided it has not changed to Friendly Societies Act individual accounts in the period of five years preceding the first day of that financial year.

(4B) In calculating the five year period for the purpose of subsection (4A), no account should be taken of a change due to a relevant change of circumstance.

(7) In subsection (5) omit “following a relevant change of circumstance”.

Section 3 Group accounts

(1) Section 69E of the 1992 Act (duty to prepare group accounts) is amended as follows.

(2) After subsection (3) insert—

(3A) The group accounts of a friendly society that is a charity must be Friendly Societies Act group accounts.

(3) At the end of subsection (4) insert—

This is subject to subsection (5A).

(4) After subsection (5) insert—

(5A) After a financial year in which the committee of management of a friendly society prepares IAS group accounts, the committee of management may change to preparing Friendly Societies Act group accounts for a reason other than a relevant change of circumstance provided it has not changed to Friendly Societies Act group accounts in the period of five years preceding the first day of that financial year.

(5B) In calculating the five year period for the purpose of subsection (5A), no account should be taken of a change due to a relevant change of circumstance.

(5) In subsection (6) omit “following a relevant change of circumstance”.