SCHEDULES

C1SCHEDULE 9A Form and Content of Accounts of Insurance Companies and Groups

Annotations:

PART I Individual Accounts

Chapter II Accounting Principles and Rules

Section C Historical Cost Accounting Rules

Miscellaneous and supplemental

37Excess of money owed over value received as an asset item

1

Where the amount repayable on any debt owed by a company is greater than the value of the consideration received in the transaction giving rise to the debt, the amount of the difference may be treated as an asset.

2

Where any such amount is so treated—

a

it shall be written off by reasonable amounts each year and must be completely written off before repayment of the debt; and

b

if the current amount is not shown as a separate item in the company’s balance sheet it must be disclosed in a note to the accounts.