Companies (1986 Order) (Insurance Companies Accounts) Regulations (Northern Ireland) 1994

Explanatory Note

(This note is not part of the Regulations.)

1.  These Regulations implement Council Directive 91/674/EEC Official Journal No. L374 of 31.12.91, pages 7 to 31, on the annual accounts and consolidated accounts of insurance undertakings, 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.  Regulations 2 and 3 amend Articles 263 and 263A of the 1986 Order which make special provisions for the accounts of banking and insurance companies and groups. They introduce a requirement for insurance companies to prepare accounts in accordance with the new Schedule 9A, and define which companies are to prepare group accounts under the special provisions with respect to insurance groups.

3.  Regulation 4 substitutes a new Schedule 9A to the 1986 Order, Schedule 1 to the Regulations. The new Schedule 9A sets out the form and content of accounts of insurance companies and groups. Part I lays down rules governing the content of the individual accounts of insurance companies, including prescribed formats to be followed, the valuation rules to be applied, the rules for determining provisions and the disclosures to be made in the notes to the accounts. Part II of new Schedule 9A 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 insurance groups.

4.  Regulation 5 of, and Schedule 2 to, the Regulations make minor and consequential amendments to the 1986 Order.

5.  Regulation 6 specifies certain companies which, under the terms of the Directive, may continue to prepare accounts under Part VIII of the 1986 Order, as it applies to insurance companies and groups, without the amendments effected by these Regulations.

6.  Regulation 7 sets out a transitional provision whereby a company may prepare accounts in accordance with the unamended Part VIII as that Part applies to insurance companies and groups, rather than under the amended provisions for a financial year commencing before 23rd December 1994.

7.  A Compliance Cost Assessment of the impact that the Regulations will have on business is available from Registry of Companies, IDB House, 64 Chichester Street, Belfast BT1 4JX.