Presentation of Financial Information in Insolvency Proceedings
Statement of Insolvency Practice 7
Northern Ireland
PRESENTATION OF FINANCIAL INFORMATION IN INSOLVENCY
PROCEEDINGS
Introduction
1. An office holder is required to report regularly to creditors and other interested parties¹.
2. The particular nature of an insolvency office holder's position renders transparency and
fairness of primary importance in all their dealings.
ICAEW
3. The term associate is defined in insolvency legislation. For the purposes of this
statement of insolvency practice, office holders should, in addition to the definition in the
insolvency legislation, consider the substance or likely perception of any association
between the insolvency practitioner, their firm, or an individual within the insolvency
practitioner's firm and the recipient of a payment. Where a reasonable and informed third
party might consider there would be an association, payments should be treated as if
they are being made to an associate, notwithstanding the nature of the association may
not meet the definition in the legislation.
Principles
4. Reports should be relevant to the interests of the creditors and other interested parties¹,
be clear and informative, be consistent across periods and be sufficient to enable
creditors and other interested parties' to understand the nature and amounts of the
receipts and payments. The office holder should consider what the creditors and other
interested parties¹ might reasonably regard as appropriate or significant in the
circumstances of each insolvency appointment, whilst being proportionate to the
insolvency appointment.
5. Payments made by an office holder should be fair and reasonable and proportionate to
the insolvency appointment, and if significant in the context of the insolvency
appointment, the office holder should report and explain why the expenditure was
incurred.
6. An office holder should report in a way that will assist creditors and other interested
parties properly to exercise their rights under the insolvency legislation.
Key compliance standards
Form and general presentation of accounts
7. In addition to any statutory requirement to provide an account in a specified form, receipts
and payments accounts should provide figures both for the period under review and on a
1 "other interested parties" means those parties with rights pursuant to the prevailing insolvency legislation to information about the
office holders receipts and payments. This may include a creditors' committee, the members (shareholders) of a company, or in
personal insolvency, the debtor
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