Sch 1 para 29A Equity method in respect of participating interests
(1) Participating interests may be accounted for using the equity method. (2) If participating interests are accounted for using the equity method— (a) the proportion of profit or loss attributable to a participating interest and recognised in the profit and loss account may be that proportion which corresponds to the amount of any dividends, and (b) where the profit attributable to a participating interest and recognised in the profit and loss account exceeds the amount of any dividends, the difference must be placed in a reserve which cannot be distributed to shareholders. (3) The reference to “dividends” in sub-paragraph (2) includes dividends already paid and those whose payment can be claimed.