When recognising and valuing assets that are available to meet liabilities arising from a member's insurance business, neither the Society nor managing agents may attribute any value to any amounts receivable but not yet received from that member or another member, except for:
If a member relies on a value attributed to a letter of credit or guarantee to meet any applicable capital resources requirement and that letter of credit or guarantee will expire in less than one month, the Society must take appropriate steps to ensure that the applicable capital resources requirement will continue to be met, including taking steps to ensure that sums due under the letter of credit or guarantee are drawn down when due and carried to the appropriate Lloyd's trust fund.
In LLD 18.3.8 R, the expiry date includes the date on which the instrument will terminate if not renewed, and the date on which any notice to terminate will or would take effect.
amounts owing to members' agents;
amounts owing to the Society;
an appropriate accrual for tax payable on any profits;
(where required under any applicable accounting principle in accordance with PRU 1.3.5 R), any contingent liability relating to liabilities reinsured into Equitas Reinsurance Ltd; and
There may be contingent liabilities associated with the reinsurance into Equitas. PRU 1.3 requires managing agents and the Society to treat those contingent liabilities in accordance with applicable accounting principles: see PRU 1.3.5 R. Depending on the circumstances, managing agents or the Society may need to disclose or account for such a liability.