131Directors to ascertain certain matters

#### 131 Directors to ascertain certain matters 131 Directors to ascertain certain matters > Before the statement of financial performance and statement of financial position are prepared, the directors of a society must take reasonable steps— > > > (a) to ascertain what action has been taken in relation to the writing off of bad debts and the making of provisions for doubtful debts and to cause all known bad debts to be written off and adequate provision to be made for doubtful debts, and > > > (b) to ascertain whether any current assets, other than current assets to which paragraph (a) applies, are unlikely to realise in the ordinary course of business their value as shown in the accounting records of the society and, if so, to cause— > > > > > (i) those assets to be written down to an amount that they might be expected so to realise, or > > > > > (ii) adequate provision to be made for the difference between the amount of the value as so shown and the amount that they might be expected so to realise, and > > > (c) to ascertain whether any non-current asset is shown in documents of the society at an amount that, having regard to its value to the society as a going concern, exceeds the amount that it would have been reasonable for the society to spend to acquire that asset as at the end of the financial year and, unless adequate provision for writing down that asset is made, to cause to be included in the accounts such information and explanations as will prevent the accounts from being misleading because of the overstatement of the amount of that asset.