(1) This paragraph applies to debt securities and other fixed income securities shown as assets under C.II and C.III of the balance sheet format (set out in Chapter 2 of Part 1 of this Schedule) which have not been valued at market value.
(2) The amount included in the balance sheet in respect of these assets shall be their purchase price.
(3) Where the purchase price of these assets exceeds the amount repayable at maturity, the amount of the difference shall be charged to the profit and loss account or reduced each financial year on a systematic basis, in accordance with best accounting practice, so that it is completely written off when the securities are repaid. That difference shall be shown separately in the balance sheet or in the notes to the accounts.
(4) Where the purchase price of these assets is less than the amount repayable at maturity, the amount of the difference may be released to income in instalments over the period remaining until repayment. That difference