s 5 Operation of the “cost test”.
In section 16 of the 1975 Act, after subsection (8) (which prevents the Board taking measures under subsection (3) or (4) if it appears to them that it would cost them less if the company went into liquidation) there shall be inserted— (8A) In making any calculation for the purposes of subsection (8) above, the Board shall— (a) discount future costs to a present value using such rates of interest as appear to them to be appropriate, and (b) in evaluating contingent costs, make such assumptions, and use such statistical and other methods, as appear to them to be reasonable. (8B) If in pursuance of subsection (3) or (4) above the Board have entered into an obligation to do anything, subsection (8) above shall not apply in relation to anything done in pursuance of the obligation.