Skip to Main Content
Interpretation and Application of UK GAAP: For Accounting Periods Commencing On or After 1 January 2015
book

Interpretation and Application of UK GAAP: For Accounting Periods Commencing On or After 1 January 2015

by Steven Collings
April 2015
Intermediate to advanced content levelIntermediate to advanced
546 pages
17h 36m
English
Wiley
Content preview from Interpretation and Application of UK GAAP: For Accounting Periods Commencing On or After 1 January 2015

Chapter 6Consolidated and Separate Financial Statements

  1. Introduction
  2. Identifying a Group
  3. Small Groups
  4. Exemptions from Preparing Group Accounts
  5. Exclusions from Consolidation
  6. Principles of Consolidation
  7. The Purchase Method
  8. Goodwill in a Business Combination
  9. Step Acquisitions
  10. Disposal of a Subsidiary
  11. Deemed Disposals
  12. Merger Accounting
  13. Separate Financial Statements
  14. Disclosure Requirements

Introduction

In the broadest terms, when a business controls another business it is required to prepare consolidated financial statements (often referred to as ‘group financial statements’). The requirement to prepare consolidated financial statements is contained in the Companies Act 2006 and in Section 9 Consolidated and Separate Financial Statements. Both the Companies Act 2006 and Section 9 set out the manner in which consolidated financial statements are prepared. The overarching objective of consolidated financial statements is to show the results of a group of companies in line with its economic substance, which is that of a single reporting entity (in other words, as if the group structure never existed). This is down to a variety of requirements, but in general many companies operate through complex structures for a variety of reasons under the control of a parent company. For that reason, the parent company's financial statements alone will not give the complete picture of its economic activities or financial position. The objective, therefore, of consolidated financial statements ...

Become an O’Reilly member and get unlimited access to this title plus top books and audiobooks from O’Reilly and nearly 200 top publishers, thousands of courses curated by job role, 150+ live events each month,
and much more.
Start your free trial

You might also like

New UK GAAP 2015: Application of FRS 100-102 in the UK

New UK GAAP 2015: Application of FRS 100-102 in the UK

Ernst & Young
Wiley GAAP 2008

Wiley GAAP 2008

Barry J. Epstein, Ralph Nach American Express Tax and Business Inc., Colorado Steven M. Bragg Englewood

Publisher Resources

ISBN: 9781118819258Purchase book