Sixth Schedule, Part IV Interpretation of Schedule

Sections 62, 149, 152, 158, 395.

27.

(1) For the purposes of this Schedule -

(a) "provision" shall, subject to subparagraph (2), mean any amount written off or retained by way of providing for depreciation, renewals or diminution in value of assets or retained by way of providing for any known liability of which the amount cannot be determined with substantial accuracy;

(b) "reserve" shall not, subject as aforesaid, include any amount written off or retained by way of providing for depreciation, renewals or diminution in value of assets or retained by way of providing for any known liability;

(c) "capital reserve" shall not include any amount regarded as free for distribution through the profit and loss account, and "revenue reserve" shall mean any reserve other than a capital reserve;

and in this paragraph "liability" shall include all liabilities in respect of expenditure contracted for and all disputed or contingent liabilities.

(2) Where -

(a) any amount written off or retaine