- This topic has 1 reply, 2 voices, and was last updated 8 years ago by
.
- Posts
Dear sir,
Under exemption from preparing group accounts it says 2 things
1. If the parent is a wholly or partially owned subsidiary it is exempt and
2. If the ultimate or intermediate parent publishes consolidated financial statements complying with IFRSNow, correct me if I’m wrong, but is this because if the ultimate or intermediate parent publishes the consolidated statements, it would cover the subsidiaries of this parent too? Because that is the only way I see it making sense.
And if it doesn’t trade its or is not in the process of trading securities in public, why is it exempt?
Your first assumption is correct “this is because if the ultimate or intermediate parent publishes the consolidated statements, it would cover the subsidiaries of this parent too”
“And if it doesn’t trade its or is not in the process of trading securities in public, why is it exempt?”
I’m not sure that you have typed this correctly!
However, if the parent is the parent of a non-trading group – what would be the point of producing consolidated financial statements of a non-trading group? Who benefits?
If the company’s securities are not quoted / traded on a recognised stock exchange (I believe that you have misunderstood this point!) then, again, who would benefit?
Imagine ABC Ltd owns 100% of XYZ Ltd. Typically the number of directly involved stakeholders / members of ABC Ltd (probably both companies!) will be very few in number, typically just 2 or 3 or possibly the members of a family.
What’s the big deal about preparing consolidated financial statements – who’s going to benefit (other than the auditors / accountants?
OK?
- The topic ‘Exemption of parents from preparing group accounts’ is closed to new replies.