The Friendly Societies (Accounts and Related Provisions) (Amendment) Regulations 2008

Citation, commencement and application

1.—(1) These Regulations may be cited as the Friendly Societies (Accounts and Related Provisions) (Amendment) Regulations 2008.

(2) They come into force on 29th June 2008 and apply in relation to financial years beginning on or after that date.

Amendments to the Friendly Societies (Accounts and Related Provisions) Regulations 1994

2.—(1) Regulations 3 to 7 amend the Friendly Societies (Accounts and Related Provisions) Regulations 1994(1).

(2) The Schedule makes consequential amendments to those Regulations.

3.  Omit regulation 9 (associated bodies).

4.  In Schedule 4 (notes to annual accounts), omit the following paragraphs—

(a) 3 to 14;

(b) 30(5) and (6);

(c) 31.

5.  In Schedule 4, after paragraph 34 insert—

“Related Party Transactions

35.— (1) Particulars may be given of transactions which the society has entered into with related parties, and must be given if such transactions are material and have not been concluded under normal market conditions.

(2) The particulars of transactions required to be disclosed by sub-paragraph (1) must include—

(a) the amount of such transactions,

(b) the nature of the related party relationship,

(c) other information about the transactions necessary for an understanding of the financial position of the society.

(3) Information about individual transactions may be aggregated according to their nature, except where separate information is necessary for an understanding of the effects of related party transactions on the financial position of the society.

(4) Particulars need not be given of transactions entered into between two or more members of a group, provided that any subsidiary undertaking which is a party to the transaction is wholly-owned by such a member.

(5) In this paragraph—

“group” means a society and its subsidiary undertakings;

“related party” has the same meaning as in international accounting standards.”.

6.  Omit Schedule 5 (notes to annual accounts: information in respect of associated bodies).

7.  In Schedule 6 (accounting principles and rules), in paragraph 24A—

(a) in sub-paragraph (2), at the end of paragraph (a), omit “or”;

(b) at the end of paragraph (b), insert—

“; or

(c) they are financial instruments falling within sub-paragraph (3A).”;

(c) in sub-paragraph (3), before “Sub-paragraph (1) does not apply to” insert “Unless they are financial instruments falling within sub-paragraph (3A) below,”;

(d) after sub-paragraph (3), insert—

“(3A) Financial instruments which, under international accounting standards adopted by the European Commission on or before 5th September 2006 in accordance with the IAS Regulation, may be included in accounts at fair value, may be so included, provided that the disclosures required by such accounting standards are made.”.

Dave Watts

Steve McCabe

Two of the Lords Commissioners of Her Majesty’s Treasury

21st April 2008