Presentation of Financial Information in Insolvency Proceedings
cumulative basis.
8. Information provided in accordance with this statement may be in a separate document
issued with the receipts and payments account or given by way of note. Unless there is
statutory provision to the contrary, this does not require the repetition of information
previously provided.
9. Receipts and payments accounts should show categories of items under headings
appropriate for the insolvency appointment, where practicable following headings used in
prior statements of affairs or estimated outcome statements. An analysis should be
provided to enable comparison with the "estimated to realise" figures in any previously
issued document.
10. Certain statutory documents require a "statement of expenses incurred" in the period and
should adopt, as far as possible, the principles of this statement but need only provide
information for the period under review.
Statement of funds held
11. Accounts should be reconciled to the balances at bank, the case records and to any
amounts due to the office holder.
12. Disclosure should be made of where the balance of the funds is held, distinguishing
between funds held on non-interest bearing accounts and interest bearing accounts in the
office holder's or the insolvent estate's name, amounts held in the Insolvency Services
Account and in Treasury Bills, and other forms of investments.
13. An office holder may present multiple receipts and payments accounts in more than one
currency where bank accounts are maintained in those currencies (with details of the
transfers between each currency), but should explain:
a) Why funds have been held in currencies other than sterling;
b) The impact of currency holdings on the estate;
c) An indication of the sterling value as at the date of the account.
Value added tax (VAT)
14. The treatment of VAT adopted within an account should be consistent and the implications
of that treatment made clear.
Payments to insolvency office holders and their associates
15. The following should be disclosed, either separately in the receipts and payments account
or by way of note:
a) Office holder's remuneration, showing the amounts paid on each basis;
b) Amounts paid to the office holder in respect of the supervision of trading;
c) All other amounts required to be approved in the same manner as remuneration;
d) Amounts paid to the office holder from the estate in respect of pre-appointment
costs;
e) Any amounts paid to the office holder or their associates or firm other than out of
the estate, giving the amounts paid, the name of payor, their relationship to the
insolvent estate and the nature of the payment;
f) Amounts paid to sub-contractors for work that would otherwise have to be carried
SIP 7 Northern Ireland 010421.docx
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