(1) Subject to paragraphs (6) and (7), where the latest annual accounts of any of the merging companies relate to a financial year ended more than six months before the date of the draft terms of merger, that company shall prepare an accounting statement in accordance with the provisions of this regulation.
(2) The accounting statement shall, where required under paragraph (1), be drawn up -
(i) in the format of the last annual balance sheet and in accordance with the provisions of the Companies Acts; and
(ii) as at a date not earlier than the first day of the third month preceding the date of the draft terms of merger.
(3) Valuations shown in the last annual balance sheet shall, subject to the exceptions outlined in paragraph (4), only be altered to reflect entries in the books of account.
(4) Notwithstanding the provisions of paragraph (3), the following shall be taken into account in preparing the accounting statement -
(a) interim depreciation and provisions, and
(b) material