Dear Tutor
quoting from technical article, group audit, "differences in reporting dates which could cause a risk of inappropriate figures being included in the consolidation for a component"
so please could you advise, if the sub/component has a different year end than the group,I assume we should include sub/component P/L and balance sheet to the group. is it any time period limit which the group can exclude sub's figures on FS? for example, if the sub has YE at June 20x0 but the group has YE January 20x0, should we include sub's figures into group FS or not?
Many thanks
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group audit: sub has different reporting date
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5y ago#1You could try looking in the SBR notes for assumed knowledge of financial - e.g. page 17:
"Non-coterminous year-ends
Financial statements within three months of the parents year-end can be used and adjusted for any significant events."
So 3 months difference is the limit on using the financial statements of a subsidiary for consolidation. If a subsidiary's y/e is more than 3 months then financial statements will have to be prepared for the subsidiary drawn up at the parent's reporting date.
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