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195 Page 111, line 3, at end insert—
("64A.—(l) Notwithstanding paragraph 62 above, the consolidated accounts prepared by a holding company may deal with an investment of any member of the group in the shares of any other body corporate by way of the equity method of accounting in any case where it appears to the directors of the holding company that that body corporate is so closely associated with any member of the group as to justify the use of that method in dealing with investments by that or any other member of the group in the shares of that body corporate.
(2) In this paragraph, references to the group, in relation to consolidated accounts prepared by a holding company, are references to the holding company and the subsidiaries dealt with by the accounts.").
§ Lord LyellMy Lords, I beg to move that this House doth agree with the Commons in their Amendment No. 195. The amendment allows the established practice of equity accounting to continue in the United Kingdom as it was put to us that the interactive effect of paragraphs 12(a), 34, and 62 of Schedule 1 would prevent the use of the present practice of equity accounting in drawing up statutory accounts. This has never been the intention of the Government and to avoid this we seek to move this amendment.
§ Moved, That this House doth agree with the Commons in the said amendment.—(Lord Lyell.)
§ On Question, Motion agreed to.