The paged version of this document contained the following header content in the margin: Sch. 3
contractor as reflecting the contractor's financial interest in the subsidiary.
(6) In ascertaining relevant income or relevant expenditure no account shall be taken of—
(a) interest on a loan, or
(b) so much of any receipt or expenditure as in the opinion of the Authority is attributable to the provision of programmes outside the United Kingdom.
(7) Where relevant income consists of advertising receipts, the income shall be attributed to accounting periods in accordance with the provisions of paragraph 1 and the same principle should be followed in relating other items of income, and items of expenditure, to accounting periods.
(8) In this paragraph " programmes " means–
(a) in the application of this Schedule in relation to the additional payments mentioned in section 32(1), television programmes, including (except in the case of a teletext contractor who is not a TV programme contractor and of sub-paragraph (6)(b)) advertisements or other programmes for broadcasting on the Fourth Channel;
(b) in the application of this Schedule in relation to the additional payments mentioned in section 32(2)(b), local sound broadcasts.
Computation of profits of programme contractors
3.—(1) It shall be the duty of the Authority–
(a) to draw up, and from time to time review, a statement setting out the principles to be followed in ascertaining relevant income and relevant expenditure for the purpose of computing under paragraph 2 the profits of a programme contractor for an accounting period; and
(b) in computing under that paragraph the profits of a programme contractor for any accounting period beginning on or after 13th November 1980, to take account of that statement (including any revision thereof which has taken effect before the end of that period).
(2) A statement under this paragraph may set out different principles for TV programme contractors, programme contractors for the provision of local sound broadcasting and teletext contractors respectively.
(3) Before drawing up or revising a statement under this paragraph the Authority shall consult the Secretary of State and the Treasury.
(4) The Authority shall—
(a) publish the statement drawn up under this paragraph and every revision of that statement; and
(b) transmit a copy of the statement, and of every revision of it, to the Secretary of State;
