Presentation of Financial Information in Insolvency Proceedings
have been used in trading.
b) Any uncollected debts and unpaid liabilities in respect of trading.
c) Trading assets (e.g. stock and work in progress) still to be realised.
Alternative approaches to asset realisation
26. From time to time the office holder may adopt an alternative method of asset realisation.
Whatever alternative method is adopted, the requirements of this statement still apply;
creditors and other interested parties¹ should be provided with sufficient information to
enable an appropriate understanding of what was done, why it was done and how much it
cost. For example, funds received from a hive-down company as consideration for the sale
of the business or its assets should be shown in the account classified according to the
categories of assets transferred and apportioned as provided for in the hive-down
agreement. The proceeds of sale of the shares in the hive-down company should be shown
separately. Funds received in respect of the hive-down company should not be shown
simply as the proceeds of sale of the hive-down company.
27. A trading account for a hive-down company should be prepared adopting the same
principles as set out above, as should trading accounts for other alternative approaches.
Third party funds
28. Where any monies are held which do not form part of the estate and are due to be paid to
third parties, the amount should be disclosed, together with any agreed fee charged to the
person entitled to the monies.
Effective Date: 1 April 2021
SIP 7 Northern Ireland 010421.docx
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