The Building Societies (Accounts and Related Provisions) (Amendment) Regulations 1991

Explanatory Note

(This note is not part of the Regulations)

These Regulations (regulation 2(2) and (3)) amend the Building Societies (Accounts and Related Provisions) Regulations (S.I. 1987/2072) so that reserves and the revaluation reserve will be separately disclosed in societies' balance sheets rather than both being included in total reserves. Such separate disclosure is a requirement of Council Directive 86/635 EEC (O.J. 31.12.86, L 372/1) on the annual accounts and consolidated accounts of banks and other financial institutions.

Regulation 2(4) removes the disclosure requirements in respect of the emoluments of higher paid employees and reflects a similar change in respect of companies affected by the Companies Act 1989 (c. 40). But regulation 2(5) requires, for the purposes of the disclosure of his emoluments, that a Chief Executive of a society, who has a statutory function under the Building Societies Act 1986, be treated as a director if he is not in fact a director.

The Regulations also (regulation 2(6) and (7)) remove the disclosure requirements in respect of the income tax on interest on shares and deposits accounted for by societies. This change follows the alteration in societies' liability for income tax consequent upon the abolition of Composite Rate Income Tax.

The remainder of regulation 2 effects minor amendments consequential on the above.