The Real Estate Investment Trusts (Joint Venture Groups) Regulations 2007

Joint venture group: financial statements

9.—(1) If a joint venture group look through notice has been given under regulation 5 in respect of a joint venture group, the principal company of that group shall prepare financial statements for each of its accounting periods in respect of the joint venture group.

(2) Paragraph 31 of Schedule 17 shall apply to the financial statements required under paragraph (1) with the following modifications.

(3) References in paragraph 31 shall be construed as follows—

(a) references to the principal company shall be treated as references to the principal company of the joint venture group,

(b) references in sub-paragraph (2) to G (property rental business) shall be treated as references to JVG (property rental business),

(c) the reference in sub-paragraph (2) to G (residual) shall be treated as a reference to JVG (residual),

(d) the reference in sub-paragraph (2) to UK business shall be treated as a reference to UK business of the joint venture group, and

(e) references to a member of a group shall be treated as references to a member of the joint venture group.

(4) For sub-paragraphs (5) and (6) there shall be treated as substituted—

“(5) The financial statements for JVG (property rental business) and JVG (residual) shall exclude that percentage of income, expenses, gains, losses, assets and liabilities of any member of the joint venture group equalling the percentage of beneficial interest in that member not held by the members of the joint venture group.

(6) For this purpose, the percentage of beneficial interest shall be determined by reference to the beneficial entitlement of the members of the joint venture group to profits available for distribution to them as equity holders in the member.”.