In Section A of Part 2 of Schedule 1 (accounting principles: individual accounts) -

(a) in paragraph 12 (consistent application of accounting policies), after "Accounting policies" insert "and measurement bases";

(b) in paragraph 13 (determination of amount of an item on a prudent basis) -

(i) omit "and" at the end of sub-paragraph (a); and

(ii) after sub-paragraph (b) insert -

"(c) all provisions for diminution of value must be recognised, whether the result of the financial year is a profit or a loss,

(d) at the balance sheet date, a provision must represent the best estimate of the expenses likely to be incurred or, in the case of a liability, of the amount required to meet that liability, and

(e) provisions must not be used to adjust the value of assets."; and

(c) after paragraph 15 (individual assets or liabilities must be determined separately in determining aggregate amount) insert -

"15A. The opening balance sheet for each financial year must correspond to the closing balance sheet for the preceding financial year.".