6.2 Requirement to prepare consolidated financial statements Flashcards
1
Q
Why are group accounts beneficial for investors?
A
It would be inefficient to review the accounts of every company in a group.
2
Q
Which standard defines the principle of “control”?
A
IFRS10
3
Q
Which groups are exempt from preparing group accounts (according to CA2006)?
A
Those that meet two of three criteria:
- Aggregate turnover less than £12.2m (gross) or £10.2m (net)
- Aggregate balance sheet total less than £6.1m (gross) or £5.1m (net)
- Aggregate number of employees less than 50
