Stuck

System
System Posts: 100,534 🤖 Admin 🤖
edited June 18 in AAT student discussion
Hi

I have come across this question and can't find an answer:

Explain the circumstances in which accounts of a subsidiary company need not be consolidated into group accounts.

The subsidiary bit is throwing me any ideas please????

Tori

Comments

  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Stuck

    If the company in question (not the subsidiary, the parent) is itself owned by another and included in their consolidated accounts?????

    Annette
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Stuck

    Many thanks that is one I haven't thought of. I now think it is also if the activities of the subsidiary are very different and would confuse the group results (divisional accounting) and if the results are not material enough to affect the figures.

    I will put down your answer too so hopefully that is enough with a bit of waffle.

    Tori xxx

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