2 
i 
i 
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)