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SECRETARIAL PRACTICE
stating how the values of the fixed assets have been
arrived at (e.g. ‘at cost’) [s. 124 (1)]. The Act
contains no definition of ‘fixed assets’ or ‘floating
assets,” and it is difficult to lay down that any parti-
cular asset necessarily falls into either class as an asset
may be fixed or floating, having regard to the nature
of the company’s business, but in many cases the
dividing line will be the same as that between ‘fixed
capital’ - and ‘circulating capital,” as to which
see below p. 189, and Ammonia Soda Co. v. Chamberlain
(1918) 1 Ch. 266 especially at pp. 274, 286, 297. If
there is a doubt whether any particular asset is fixed
or floating the method of valuation should be given.
If the company has issued redeemable preference
shares, the balance sheet must specify what part of the
issued capital consists of such shares and the date on
or before which the same are or are to be liable to be
redeemed {s. 46 (2)].
11)

Show under separate headings, so far as not written off
(a) the preliminary expenses of the company; (b) any
expenses incurred in connection with the issue of
shares or debentures; (c¢) if ascertainable from any of
the sources indicated in the section, the amount of the
goodwill and of any patents and trade marks [s. 124
(2)]; (4d) any underwriting commission paid or allowed
[s. 44 (1)]; (¢) any discount allowed on the issue of
shares [s. 47 (3)].
Show as a separate item any outstanding loans made in
connection with the purchase by any person of shares
in the company under the authority of provisos (b) or
(c) tos. 45 (1) [s. 45 (2)1.

If any liability of the company is secured otherwise
than by operation of law on any assets of the company,
state that such liability is so secured (but the assets
comprised in the security need not be specified)
[s. 124 (3).

(v) If the company has power to re-issue any debentures
which have been redeemed, contain particulars of such
debentures [s. 75 (3)]-

(vi) If any of the assets of the company consist of shares in
or amounts owing by a subsidiary company as defined
by s. 127 (see infra. p. 180), show as a separate item the
aggregate amount of such assets, distinguishing shares
and indebtedness (s. 125).

(iv)