(a) Where national law authorizes the inclusion of formation expenses under "Assets", they must be written off within a maximum period of five years.
(b) In so far as formation expenses have not been completely written off, no distribution of profits shall take place unless the amount of the reserves available for distribution and profits brought forward is at least equal to that of the expenses not written off.
2. The amounts entered under "Formation expenses" must be explained in the notes on the accounts.