Subject to Regulation 8, the amounts to be included in the Companies Act accounts of an undertaking in respect of the items shown shall be determined in accordance with the following principles:
(a) the undertaking shall be presumed to be carrying on business as a going concern,
(b) accounting policies shall be applied consistently from one financial year to the next,
(c) subject to the provisions of the Schedule, the amount of any item in the Companies Act accounts shall be determined on a prudent basis and in particular -
(i) only profits which have arisen by the balance sheet date shall be included in the profit and loss account, and
(ii) all liabilities which have arisen in respect of the financial year to which the Companies Act accounts relate, or a previous financial year, shall be taken into account, including those liabilities and losses which only become apparent between the balance sheet date and the date on which the Companies Act accounts are signed in pursuance of se