Group Consolidated External Reports

Ok, first of all, it's Mike, not John! We're in the situation of a "vertical group" - that's something you'll come across at P2 level and is only grazed upon (not even touched upon) at F7 level. The sub-topic is about non-consolidation and, within your quote there are two situations for non consolidation by a parent First is where the parent of a group is itself a wholly owned subsidiary of another company. So whereas company B has a 70% subsidiary company C, clearly company B should prepare consolidated statements for the B Group. But if company A owns 100% of the shares in company B, what's the point of preparing the financial statements for the B Group when the only shareholder interested in the B Group results is company A? That's situation 1 Situation 2 is where company A owns only, say, 80% of company B and 20% is owned by other investors in company B. clearly again, company B should prepare financial statements for the B Group and then company A will prepare financial statements for the A Group incorporating the results of the B Group. So two lots of consolidated financial statements However, if the 20% holders of company B say to company A "we're not bothered about receiving consolidated financial statements for the B Group" then there is the second situation "if the parent (B) is a partly owned subsidiary of another entity AND ITS OTHER OWNERS HAVE NO OBJECTION" then company B can avoid having to prepare consolidated financial statements for the B Group Clearer?

Well noted Sir Mike !!! Thanking you very much.

You're welcome