S.L. 281.7 ст. 5Applicability of schedules. 

(1) These regulations shall apply to the following entities as defined within these regulations and shall not apply to any other entity:

(a) a captive insurance undertaking; or

(b) a captive reinsurance undertaking; or

(c) a Solvency II Directive exempted insurance undertaking; or

(d) a specialised run-off undertaking; or

(e) an ancillary insurance undertaking; or

(f) an ancillary reinsurance undertaking; or

(g) a protected cell company; or PRINCIPLES IN RESPECT OF CERTAIN ELIGIBLE 281.07 ENTITIES RELATED TO THE BUSINESS OF INSURANCE)

(h) a cessation undertaking; or

(i) redomiciled undertaking; or

(j) insurance and, or risk transferee vehicle; or

(k) insurance and, or reinsurance parent undertaking; or

(l) risk transferee vehicle parent undertaking.

Provided that the undertaking referred to in paragraphs

(h) and (i) of sub-regulation (1) of regulation 5 will be considered as an eligible entity only during the transitory period until it ceases to provide insurance business or has transferred its registered office to or continued its operations in another jurisdiction, as applicable.

(2) Where, throughout the financial reporting period, an eligible entity ceases to fall within the definition of one of the entities set out in sub-regulation (1), these regulations shall no longer apply to such entity.

(3) The Schedule shall not apply to:

(i) listed companies whose securities are traded on a regulated market; and

(ii) public interest entities other than eligible entities.

 SCHEDULE Amended by: L.N. 299 of (regulations 3, 4 and 5) 2025.

General Accounting Principles in respect of certain Eligible Entities related to the business of Insurance

Section 1: Citation and objective

1.1 The title of this schedule is the General Accounting Principles in respect of certain Eligible Entities related to the business of Insurance (GAPEE).

1.2 The objective of GAPEE is to ensure that reporting entities or groups falling within its scope provide in their financial statements information about the financial position and financial performance and cash flows of the entity or group that is useful to users in assessing the stewardship of management and for making economic decisions, recognising that the balance between users’ needs in respect of stewardship and economic decision-making for entities or groups falling within its scope is different from that for other reporting entities or groups.

Section 2: Interpretation

2.1 The terms "GAPEE", "these Principles", "this Schedule" and "General Accounting Principles in respect of certain Entities related to the business of Insurance" all refer to the general accounting principles in respect of certain entities related to the business of Insurance set out in the Schedule to these regulations and forming an integral part hereof.

2.2 Most terms used in these Principles are defined in regulation 3 of these regulations and in various relevant Sections of this Schedule. Nevertheless, terms that are not so defined shall have the following meaning, unless the context otherwise requires:

(a) "Amortisation" means the systematic allocation of the depreciable amount of an asset over its useful life.

(b) "Carrying amount" refers to the amount at which an asset or liability is recognised in the balance sheet.

(c) "Cash flows" means inflows and outflows of cash and cash equivalents.

(d) "Class of assets" means a grouping of assets of a similar nature and use in an entity’s operations.

(e) "Closing rate of exchange" is the spot exchange rate between two currencies at the balance sheet date.

(f) "Depreciable amount" is the cost of an asset, or other amount substituted for cost (in the financial statements), less its residual value.

(g) "Depreciation" means the systematic allocation of the depreciable amount of an asset over its useful life.

(h) "Derecognition" is the removal of a previously recognised asset or liability from an entity’s balance sheet.

(i) "Economic life" is either

(i) the period over which an asset is expected to be economically useable by one or more users; or

(ii) the number of production or similar units expected to be obtained from the asset by one or more users. PRINCIPLES IN RESPECT OF CERTAIN ELIGIBLE 281.07 ENTITIES RELATED TO THE BUSINESS OF INSURANCE)

(j) "Employee benefits" refers to all forms of consideration given by an entity in exchange for service rendered by employees.

(k) "Fair value" is the amount for which an asset could be exchanged, or a liability settled, between knowledgeable, willing parties in an arm’s length transaction.

(l) "Fellow subsidiary" is an entity which is under common control with the reporting entity.

(m) "Finance costs" means interest and other costs incurred by an entity in connection with the borrowing of funds.

(n) "Goodwill" means future economic benefits arising from assets that are not capable of being individually identified and separately recognised.

(o) "Group" means a parent and all its subsidiaries and the term group entities shall be construed accordingly.

(p) "Impracticable"- applying a requirement is impracticable when the entity cannot apply it after making every reasonable effort to do so.

(q) "Measurement" is the process of determining the monetary amounts at which the elements of the financial statements are to be recognised and carried in the balance sheet and income statement.

(r) "Minority interest" refers to that portion of the profit or loss and net assets of a subsidiary attributable to equity interests that are not owned, directly or indirectly through subsidiaries, by the parent.

(s) "Present value" is a current estimate of the present discounted value of the future net cash flows in the normal course of business.

(t) "Probable" means more likely than not.

(u) "Profit" is the residual amount that remains after expenses have been deducted from income.

(v) "Reporting date" or "balance sheet date" are the end of the latest financial reporting period covered by financial statements.

(w) "Reporting period" or "financial reporting period" refer to a period, ending on the entity’s reporting date, for which financial statements have been prepared.

(x) "Residual value" (of an asset) is the estimated amount that an entity would currently obtain from disposal of an asset, after deducting the estimated costs of disposal, if the asset were already of the age and in the condition expected at the end of its useful life.

(y) "Useful life" (Section 14) means the estimated remaining period, from the commencement of the lease term, without limitation by the lease term, over which the economic benefits embodied in the asset are expected to be consumed by the entity.

(z) "Useful life" (Sections 7, 11, 12 and 21) means either:

(i) the period over which an asset is expected to be available for use by the entity; or

(ii) the number of production or similar units expected to be obtained from the asset by the entity.

Section 3: Concepts and pervasive principles

3.1 The scope of this Section is to deal with:

(a) the objective of financial statements and the underlying assumptions;

(b) the qualitative characteristics that determine the usefulness of information in financial statements; and

(c) the definition and recognition of the elements of financial statements.

Objective of financial statements and underlying assumptions

3.2 The objective of financial statements prepared under GAPEE is to provide information about an entity’s:

(a) financial position,

(b) financial performance, and

(c) the ability to generate cash and cash equivalents that is useful to a wide range of users in assessing the stewardship of management and for economic decision-making. PRINCIPLES IN RESPECT OF CERTAIN ELIGIBLE 281.07 ENTITIES RELATED TO THE BUSINESS OF INSURANCE)

3.3 In order to meet their objective, financial statements (with the exception of cash flow information) shall be prepared on the accrual basis of accounting. Under this basis, the effects of transactions and other events giving rise to assets, liabilities, equity, income or expenses are recognised when they occur, rather than when cash or its equivalent is received or paid, and hence they are recorded in the accounting records and reported in the financial statements of the financial reporting periods to which they relate.

3.4 The entity shall be presumed to be carrying on business as a going concern. The financial statements shall be prepared on this basis unless management either intends to liquidate the entity or to cease trading, or it has no realistic alternative but to do so. When management is aware, in making its assessment, of material uncertainties related to events or conditions that may cast significant doubt upon the entity’s ability to continue as a going concern, those uncertainties shall be disclosed. When financial statements are not prepared on a going concern basis, that fact shall be disclosed, together with the basis on which the financial statements are prepared and the reason why the entity is not regarded as a going concern. The period considered by management in making its assessment of the entity’s ability to continue as a going concern shall not be less than twelve months from the balance sheet date. The financial statements shall not be prepared on a going concern basis if management determines after the balance sheet date either that it intends to liquidate the entity or to cease trading, or that it has no realistic alternative but to do so.

3.5 The uncertainties that inevitably surround many events and circumstances are acknowledged by the disclosure of their nature and extent and by the exercise of prudence in the preparation of the financial statements. Prudence is the inclusion of a degree of caution in the exercise of the judgements needed in making the estimates required under conditions of uncertainty, in particular:

(a) only profits made by the balance sheet date may be recognised,

(b) all liabilities arising in the course of the financial year concerned or in the course of a previous financial year shall be recognised, even if such liabilities become apparent only between the balance sheet date and the date on which the balance sheet is drawn up, and

(c) all negative value adjustments shall be recognised, whether the result of the financial year is a profit or a loss.

However, the exercise of prudence does not allow the deliberate understatement of assets or income, or the deliberate overstatement of liabilities or expenses. In short, prudence does not permit bias.

3.6 The requirements set out in these Principles regarding recognition, measurement, presentation, disclosure and consolidation need not be complied with when the effect of complying with them is immaterial. Information is material if its omission or misstatement could influence the economic decisions of users made on the basis of the financial statements. Materiality depends on the size of the item or error judged in the particular circumstances of its omission or misstatement. However, it is inappropriate to make, or leave uncorrected, immaterial departures from GAPEE to achieve a particular presentation of an entity’s financial position, financial performance or cash flows.

Qualitative characteristics of information in financial statements

3.7 Qualitative characteristics are the attributes that make the information provided in financial statements useful to users.

3.8 The information provided in Understandability – financial statements should be presented in a way that makes it comprehensible by users who have a reasonable knowledge of business and economic activities and accounting and a willingness to study the information with reasonable diligence. However, the need for understandability does not allow relevant information to be omitted on the grounds that it may be too difficult for some users to understand.

3.9 Relevance – The information provided in financial statements must be relevant to the decision-making needs of users. Information has the quality of relevance when it influences the economic decisions of users by helping them evaluate past, present or future events or confirming, or correcting, their past evaluations.

3.10 The information provided in financial Reliability – statements must be reliable. Information is reliable when it is free from material error and bias and represents faithfully that which it either purports to represent or could reasonably be expected to represent. Financial statements are not free from bias if, by the selection or presentation of information, they are intended to influence the making of a decision or judgement in order to achieve a predetermined result or outcome.

3.11 Transactions and other events and Substance over form – conditions shall be accounted for and presented in accordance with their substance and economic reality and not merely their legal form. This enhances the reliability of financial statements.

3.12 Completeness – To be reliable, the information in PRINCIPLES IN RESPECT OF CERTAIN ELIGIBLE 281.07 ENTITIES RELATED TO THE BUSINESS OF INSURANCE)

financial statements must be complete within the bounds of materiality and cost. An omission can cause information to be false or misleading and thus unreliable and deficient in terms of its relevance.

3.13 Users must be able to compare the Comparability – financial statements of an entity through time in order to identify trends in its financial position and performance. Users must also be able to compare the financial statements of different entities in order to evaluate their relative financial position, performance and cash flows. Hence, the measurement and display of the financial effect of like transactions and other events and conditions must be carried out in a consistent way throughout an entity and over time for that entity and in a consistent way for different entities. In addition, users must be informed of the accounting policies employed in the preparation of the financial statements, and of any changes in those policies and the effects of such changes.

3.14 To be relevant, financial information must Timeliness – be able to influence the economic decisions of users. Timeliness involves providing the information within the decision time frame. If there is undue delay in the reporting of information it may lose its relevance. Management may need to balance the relative merits of timely reporting and the provision of reliable information. In achieving a balance between relevance and reliability, the overriding consideration is how best to satisfy the needs of users in making economic decisions.

3.15 Balance between benefit and cost – The benefits derived from information should exceed the cost of providing it. The evaluation of benefits and costs is substantially a judgemental process. Furthermore, the costs are not necessarily borne by those users who enjoy the benefits. In applying a costs and benefits test, an entity should understand that the benefits of the information may also be enjoyed by a broad range of external users.

True and fair view

3.16 Preparation of financial statements in accordance with these Principles is presumed to result in financial statements which give a true and fair view of the financial position, financial performance and cash flows of an entity.

3.17 The annual financial statements shall give a true and fair view of the entity's assets, liabilities, financial position and profit or loss. Where the application of these Principles would not be sufficient to give a true and fair view of the entity's assets, liabilities, financial position and profit or loss, such additional information as is necessary to comply with that requirement shall be given in the notes to the financial statements.

3.18 Transactions and other events and conditions shall be accounted for and presented within items in the income statement and balance sheet in accordance with their substance and economic reality and not merely their legal form. To determine the substance of a transaction it is necessary to identify whether the transaction has given rise to new assets or liabilities for the reporting entity and whether it has changed the entity’s existing assets or liabilities.

3.19 The application of the qualitative characteristics and appropriate Sections within these Principles normally results in financial statements that convey a true and fair view. However, if in exceptional cases an entity’s management concludes that compliance with any of the requirements of these Principles is inconsistent with the requirement to give a true and fair view, an entity shall depart from that requirement to the extent necessary to give a true and fair view. Particulars of the departure, the reasons for it and its effect must be given in a note to the financial statements as follows:

(a) a statement that there has been a departure from the requirements of GAPEE and that the departure is necessary to give a true and fair view;

(b) an explanation of the nature and the reasons for the departure;

(c) its effect on the entity’s assets, liabilities, financial position and profit or loss.

3.20 Where a departure continues in subsequent financial statements, the disclosures shall be made in all subsequent financial statements and shall include comparative amounts for the previous financial reporting period.

The elements of financial statements

3.21 Financial statements portray the financial effects of transactions and other events by grouping them into broad classes according to their economic characteristics. These broad classes are termed the elements of financial statements, which term includes assets, liabilities, equity, income and expenses. Paragraphs 3.22 – 3.30 define these elements.

3.22 The elements directly related to the measurement of financial position are assets, liabilities and equity.

3.23 An asset is a resource controlled by the entity as a result of past events and from which future economic benefits are expected to flow to the entity. The future economic benefit embodied in an asset is the potential to contribute, directly or indirectly, to the flow of cash and cash equivalents to the entity, for example through use in the PRINCIPLES IN RESPECT OF CERTAIN ELIGIBLE 281.07 ENTITIES RELATED TO THE BUSINESS OF INSURANCE)

entity’s operating activities, or through convertibility to cash and cash equivalents, or through its capability to reduce cash outflows.

3.24 A liability is a present obligation of the entity arising from past events, the settlement of which is expected to result in an outflow from the entity of resources embodying economic benefits. An essential characteristic of a liability is that the entity has a present, rather than a future, obligation. A present obligation therefore arises from past transactions or other past events. Moreover, the settlement of the present obligation usually involves the entity giving up resources embodying economic benefits, such as the payment of cash, transfer of other assets, provision of services, replacement of that obligation with another obligation, or conversion of that obligation to equity.

3.25 Equity is the residual interest in the assets of the entity after deducting all its liabilities. However it may be sub-classified in the balance sheet, for example in funds contributed by shareholders, retained earnings and other reserves.

3.26 Profit is frequently used as a measure of an entity’s performance. The elements directly related to the measurement of profit are income and expenses.

3.27 Income is increases in economic benefits during the financial reporting period in the form of inflows or enhancements of assets or decreases of liabilities that result in increases in equity, other than those relating to contributions from equity participants.

3.28 The definition of income encompasses both revenue and gains. Revenue arises in the course of the ordinary activities of an entity and is referred to by a variety of different names including sales, fees, interest, dividends, royalties and rent. Gains represent other items that meet the definition of income in paragraph 3.27 and may, or may not, arise in the course of the ordinary activities of an entity. Gains include, for example, those arising on the disposal of non-current assets or from increases in their carrying amounts.

3.29 Expenses are decreases in economic benefits during the financial reporting period in the form of outflows or depletions of assets or incurrences of liabilities that result in decreases in equity, other than those relating to distributions to equity participants.

3.30 The definition of expenses encompasses losses as well as those expenses that arise in the course of the ordinary activities of the entity. The latter include, for example, cost of sales, wages and depreciation. They usually take the form of an outflow or depletion of assets such as cash and cash equivalents, inventory, property, plant and equipment. Losses represent other items that meet the definition of expenses in paragraph 3.29 and may, or may not, arise in the course of the ordinary activities of the entity. Losses include, for example, those resulting from disasters such as fire and flood, those arising on the disposal of non-current assets, and those unrealised losses arising from the effects of increases in the rate of exchange for a foreign currency in respect of the borrowing of an entity in that currency.

Recognition of the elements of financial statements

3.31 Recognition is the process of incorporating in the balance sheet or income statement an item that meets the definition of an element and satisfies the following criteria:

(a) it is probable that any future economic benefit associated with the item will flow to or from the entity;

(b) the item has a cost or value that can be measured reliably.

3.32 An asset is recognised in the balance sheet when it is probable that the future economic benefits will flow to the entity and the asset has a cost or value that can be measured reliably. An asset is not recognised in the balance sheet when expenditure has been incurred for which it is considered improbable that economic benefits will flow to the entity beyond the current financial reporting period. Such a transaction would therefore be recognised as an expense in the income statement.

3.33 A liability is recognised in the balance sheet when it is probable that an outflow of resources embodying economic benefits will result from the settlement of a present obligation and the amount at which the settlement will occur can be measured reliably.

3.34 Income is recognised in the income statement when an increase in future economic benefits related to an increase in an asset or a decrease of a liability has arisen that can be measured reliably. This means, in effect, that recognition of income occurs simultaneously with the recognition of increases in assets or decreases in liabilities.

3.35 Expenses are recognised in the income statement when a decrease in future economic benefits related to a decrease in an asset or an increase of a liability has arisen that can be measured reliably. This means, in effect, that recognition of expenses occurs simultaneously with the recognition of an increase in liabilities or a decrease in assets. Expenditure incurred on assets that generate economic benefits over several financial reporting periods is normally recognised as an expense in the income statement on the basis of systematic and rational allocation procedures. This is often necessary in recognising the expenses associated with the using up of assets such as property, plant and equipment, patents and trademarks; in such PRINCIPLES IN RESPECT OF CERTAIN ELIGIBLE 281.07 ENTITIES RELATED TO THE BUSINESS OF INSURANCE)

cases the expense is referred to as depreciation or amortisation. An expense is also recognised immediately in the income statement when an expenditure produces no future economic benefits or when, and to the extent that, future economic benefits do not qualify, or cease to qualify, for recognition in the balance sheet as an asset. An expense is also recognised in the income statement in those cases when a liability is incurred without the recognition of an asset.

3.36 The requirements for recognising and measuring assets, liabilities, income and expenses in these Principles are based on pervasive principles that are identified in paragraphs 3.21 – 3.35 of this Section. In the absence of a requirement in GAPEE that applies specifically to a transaction or other event or condition, paragraph 5.5 establishes a hierarchy for an entity to follow in deciding on the appropriate accounting policy in the circumstances. The second level of that hierarchy (paragraph 5.5(b)) requires an entity to consider the pervasive recognition and measurement principles set out in paragraphs 3.21 – 3.35 and paragraph 3.39 of this Section.

Derecognition of the elements of financial statements

3.37 After an asset or liability is recognised on the balance sheet, it shall be derecognised if, and to the extent that, it is no longer probable that any future economic benefits associated with the item will flow to or from the entity.

Measurement of the elements of financial statements

3.38 Measurement is the process of determining the monetary amounts at which assets, liabilities, income and expenses are to be recognised and carried in the balance sheet and income statement. Measurement involves the selection of a basis of measurement. These Principles specify which measurement basis an entity shall use for many types of assets, liabilities, income and expenses. In the absence of a requirement in GAPEE that applies specifically to a transaction or other event or condition, an entity shall have regard to measurement bases for similar assets, liabilities, income and expenses when determining monetary amounts at which such transactions, other events or conditions are to be initially and subsequently measured.

3.39 Items recognised in the financial statements shall be measured by reference to their cost unless these Principles allow an alternative measurement basis.

3.40 The components of asset and liability items shall be valued separately.

Section 4: Presentation of financial statements

4.1 A complete set of financial statements comprises:

(a) a balance sheet;

(b) an income statement;

(c) notes to the financial statements; and

(d) statement of changes in equity and statement of cash flows as provided for in paragraphs 4.30 and 4.33 of these Principles.

Provided that in respect of the statements referred to in paragraphs 4.1 (a), (b) and (d), an entity may use titles for the statements other than those used in these Principles.

The annual financial statements shall constitute a composite whole. They shall be drawn up in accordance with the provisions of these Principles.

4.2 The financial statements shall be identified clearly and distinguished from other information in the same published document and each component of the financial statements shall be identified clearly. In addition, the following information shall be displayed prominently, and repeated when it is necessary for a proper understanding of the information presented:

(a) the name of the reporting entity and any change in its name since the end of the preceding financial reporting period;

(b) the information necessary to identify the register with which the entity is registered, together with the number of the company in the register, the legal form of the company, the location of the registered office, and where appropriate, the fact that the company is being wound up.

(c) whether the financial statements cover the individual entity or a group of entities;

(d) the date of the end of the financial reporting period or the period covered by the financial statements, whichever is appropriate to that component of the financial statements;

(e) the presentation currency, as defined in Section 18 of these Principles; and

(f) the level of rounding, if any, used in presenting PRINCIPLES IN RESPECT OF CERTAIN ELIGIBLE 281.07 ENTITIES RELATED TO THE BUSINESS OF INSURANCE)

amounts in the financial statements.

4.3 An entity that is permitted to apply GAPEE in accordance with regulation 5 of these regulations, and that opts to apply these Principles, shall present a complete set of financial statements (including comparative information) at least annually. When the end of an entity’s financial reporting period changes and the annual financial statements (including comparatives) are presented for a period longer or shorter than one year, the entity shall disclose:

(a) that fact;

(b) the reason for using a longer or shorter period; and

(c) the fact that comparative amounts for the income statement, statement of changes in equity, statement of cash flows and related notes are not entirely comparable.

4.4 An entity shall retain the presentation and classification of items in the financial statements from one financial reporting period to the next unless:

(a) it is apparent, following a significant change in the nature of the entity’s operations or a review of its financial statements, that another presentation or classification would be more appropriate having regard to the criteria for the selection and application of accounting policies; or

(b) these Principles require a change in presentation.

4.5 When the presentation or classification of items in the financial statements is changed, an entity shall reclassify comparative amounts unless the quantification of that reclassification is impracticable. When comparative amounts are reclassified, an entity shall disclose:

(a) the nature of the reclassification;

(b) the amount of each item or class of items that is reclassified; and

(c) the reason for the reclassification.

4.6 When it is impracticable to quantify the amount of the reclassification, an entity shall disclose:

(a) the reason for not reclassifying the amounts; and

(b) the nature of the adjustments that would be required, had the amounts been able to be determined.

4.7 Comparative amounts for the previous financial reporting period shall be shown for every item presented in the financial statements and notes thereto. Comparative information shall be included for narrative and descriptive information when it is relevant to an understanding of the current financial reporting period’s financial statements. Where there is no amount to be shown for an item for the current financial reporting period but a comparative amount can be shown for the previous period, the comparative amount shall be shown. Where a comparative amount is not comparable with that for the current financial reporting period for the reason contemplated in paragraphs 5.7 – 5.9 of these Principles, it shall be adjusted and particulars of the adjustment and the reasons for it shall be disclosed in a note to the financial statements.

4.8 Comparative amounts are not required to be disclosed in relation to any amounts stated in the notes to the financial statements for the items listed below:

(a) a reconciliation of the carrying amount of property, plant and equipment and investment property at the beginning and end of the financial reporting period as required by sub-paragraph (f) of paragraph 7.27, and paragraph 8.14 (by virtue of a reference to the requirements of paragraph 7.27), respectively of these Principles ;

(b) a reconciliation of the carrying amount of intangible assets at the beginning and end of the financial reporting period as required by sub-paragraph (b) of paragraph 11.20of these Principles;

(c) a reconciliation of the carrying amount of goodwill at the beginning and end of the financial reporting period as required by paragraph 21.22 of these Principles;

(d) a reconciliation of the carrying amount of each category of investments classified as non-current assets at the beginning and end of the financial reporting period as required by sub-paragraph (b) of paragraph 9.39 of these Principles;

(e) a reconciliation of the carrying amount of non-current investments in subsidiaries, associates and jointly controlled entities at the beginning and end of the financial reporting period as required by sub-paragraph (b) of paragraph 10.29 of these Principles; and

(f) a reconciliation of the carrying amount of each class of provisions at the beginning and the end of the financial reporting period as required by subparagraph (c) of paragraph 17.17 of these Principles. PRINCIPLES IN RESPECT OF CERTAIN ELIGIBLE 281.07 ENTITIES RELATED TO THE BUSINESS OF INSURANCE)

4.9 An entity shall present separately each material class of similar items. An entity shall present separately items of a dissimilar nature or function unless they are immaterial. Omissions or misstatements of items are material if they could, individually or collectively, influence the economic decisions of users taken on the basis of the financial statements. Materiality depends on the size and nature of the omission or misstatement judged in the surrounding circumstances. The size or nature of the item, or a combination of both, could be the determining factor.

4.10 An entity shall not offset assets and liabilities, or income and expenses, unless required or permitted by these Principles, in which case the amounts which are set off shall be specified as gross amounts in the notes to the financial statements.

4.11 An entity’s financial statements shall comply with the requirements set out in this Section as to their form and content.

Balance Sheet

4.12 The balance sheet presents an entity’s assets, liabilities and equity at a point in time. The opening balance sheet for each financial year shall correspond to the closing balance sheet for the preceding financial year.

4.13 An entity may adopt one of the layouts set out in this Section. The following items shall be shown separately on the face of the balance sheet, in the order indicated, and under the headings and sub-headings listed below. Items preceded by Arabic numerals may be combined under their respective sub-heading when they are immaterial for the purposes of the financial statements giving a true and fair view, or such combination makes for greater clarity, in which latter case the items combined shall be dealt with separately in the notes. The layout, nomenclature and terminology of items in the balance sheet that are preceded by Arabic numerals may be amended according to the nature of the entity and its transactions to provide information that is relevant to an understanding of the entity’s financial position.

In respect of each item an entity also needs to show the corresponding amount for the preceding financial reporting period. Unless there is a corresponding item that needs to be shown, an entity shall not show any item listed below for which there is no amount for the current period.

Horizontal layout of the balance sheet

ASSETS

Non-current assets

I. Intangible assets