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The Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008

The Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008 Sch 2 para 30

Sch 2 para 30 Financial fixed assets

(1) Debt securities, including fixed-income securities, held as financial fixed assets must be included in the balance sheet at an amount equal to their maturity value plus any premium, or less any discount, on their purchase, subject to the following provisions of this paragraph. (2) The amount included in the balance sheet with respect to such securities purchased at a premium must be reduced each financial year on a systematic basis so as to write the premium off over the period to the maturity date of the security and the amounts so written off must be charged to the profit and loss account for the relevant financial years. (3) The amount included in the balance sheet with respect to such securities purchased at a discount must be increased each financial year on a systematic basis so as to extinguish the discount over the period to the maturity date of the security and the amounts by which the amount is increased must be credited to the profit and loss account for the relevant years. (4) The notes to the accounts must disclose the amount of any unamortized premium or discount not extinguished which is included in the balance sheet by virtue of sub-paragraph (1). (5) For the purposes of this paragraph “ premium ” means any excess of the amount paid for a security over its maturity value and “ discount ” means any deficit of the amount paid for a security over its maturity value.

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