Companies Act (Cap. 386), article 196

196. (1) Subject to the following p rovisions of this article, where development costs are shown as an asset in a company’s annual accounts, any amount shown in respect of those costs is to be treated - (a) under article 192, as a realised loss; and (b) under article 194, as a realised revenue loss. (2) The provisions of sub-article (1) shall not apply to any par t of that amount representing an unrealised profit made on revaluation of those costs. Distribution to be justified by reference to company’s accounts. Amended by: XVIII.2025.29.