Group Accounts

Emrhino

Hi all,

I have a meeting this afternoon with a potential client - when he first described his businesses I thought he had 3 associated companies but looking into Companies House records it appears to be a group.

I haven't produced accounts/tax returns for a 'real' group of companies before - although I did study group accounts quite extensively at AAT & CIMA (a long time ago) - but don't want to take on anything I shouldn't.

My immediate reaction is to refer them elsewhere but am wondering if I am just having a crisis of confidence! I have learnt so much in addition to my studies by just getting on with it and doing extra research but I'm a bit wary of this...

Would you just say no on the basis of lack of experience?

Any thoughts greatfully received as always!

Emma

qwerty

Are the group accounts prepared because they are required (due to being a medium sized group) or because of choice?

If they are a medium sized group, then they will need an audit. As you say you have AAT and CIMA, you will not be able to sign off an audit report, so you would be able to complete accounts etc. but the group would still need someone else to carry out an audit.

Emrhino

Hi qwerty,

They are a group because one parent owns 2 subsidiaries. They are under the audit threshold.

Emma

qwerty

If they are under the audit threshold then they must be a small group and therefore they do not have to prepare group accounts. This should make preparing the accounts a lot easier, if you decide to do so.