The Real Estate Investment Trusts (Joint Ventures) Regulations 2006

Financial statements

5.—(1) A venturing company shall prepare a financial statement, in accordance with the Real Estate Investment Trusts (Financial Statements of Group Real Estate Investment Trusts) Regulations 2006(1) for each of its accounting periods in respect of any joint venture company in respect of which it has made an election that these Regulations should apply.

(2) Paragraph 31 of Schedule 17 shall apply to the financial statement required under paragraph (1) as if—

(a) references in sub-paragraphs (2) to (4) to the principal company were references to the venturing company;

(b) references in sub-paragraphs (2) to (4) to G (property rental business) were references to the sum of C (tax-exempt) and the property rental business of the joint venture company;

(c) references in sub-paragraphs (2) to (4) to G (residual) were references to the sum of C (residual) and so much of the business of the joint venture company as is not property rental business;

(d) references to a member of a group were references to the venturing company or the joint venture company; and

(e) for sub-paragraphs (5) and (6) there were substituted—

“(5) The financial statements for G (property rental business) and G (residual) shall exclude that percentage of income, expenses, gains, losses, assets and liabilities of any joint venture company or companies equalling the percentage of beneficial interest in the joint venture company that is not held by the venturing company.

(6) For this purpose, the percentage of beneficial interest shall be determined by reference to beneficial entitlement to profits available for distribution to equity holders.”.

(1)

S.I. 2006/ 2865