Companies (1986 Order) (Bank Accounts) Regulations (Northern Ireland) 1992

Explanatory Note

(This note is not part of the Regulations.)

1.  These Regulations implement Council Directive 86/635/EEC (O.J. No. L372, 31.12.1986, pages 1-17) on the Annual Accounts and Consolidated Accounts of Banks and Other Financial Institutions, in so far as that Directive is applicable to bodies corporate to which Part VIII of the Companies (Northern Ireland) Order 1986 (“the 1986 Order”) applies.

2.  The Regulations firstly amend Schedule 9 to the 1986 Order, which makes special provision for the accounts of banking and insurance companies and groups. The existing Parts I and II of that Schedule are formed by the Regulations into a new Schedule 9A (regulation 5(1)) and confined in their operation to insurance companies and groups. The existing Part III of Schedule 9 is repealed (regulation 5(2)). New Parts I to III are inserted into Schedule 9 by regulation 5(4) and are set out in Parts I to III of Schedule 1. The new Part I lays down rules governing the content of the individual accounts of banking companies, including prescribed formats to be followed, the valuation rules to be applied and the disclosures to be made in the notes to the accounts. The new Part II adapts the general rules of Part VIII of the 1986 Order with respect to the consolidated accounts of a company to the special circumstances of banking groups. The new Part III makes special provision with respect to the disclosures required of banking companies and the parent companies of banking groups in respect of undertakings in which they, or members of their group of companies, have invested.

3.  Regulation 3 substitutes new Articles 263 to 263B for the existing Articles of those numbers in Part VIII of the 1986 Order. These Articles introduce the new provisions of Schedule 9 and the new Schedule 9A. Inter alia, they define which companies are to prepare group accounts under the special provisions with respect to banking groups.

4.  Regulation 4 also amends Article 263C of the 1986 Order, which sets out special rules on the content of the directors' report and presently applies to banking and insurance companies and groups, so that for the future it will only apply to insurance companies and groups.

5.  Regulations 6 to 8 make further and consequential amendments.

6.  Regulation 9 sets out a transitional provision whereby a company may prepare accounts in accordance with the unamended Part VIII, as that Part applies to banking companies and groups, rather than under the amended provisions for a financial year commencing prior to 23rd December 1992.