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How audit requirements apply to holding companies that do not trade?

Hi,

The UK company is a holding a company for a foreign based subsidiary, does no trading and has no employees. All trading is done by the foreign company which declares limited dividends to a the holding company in the UK. The value of the assets of the subsidiary is c.£7m and its shares on the balance sheet of the UK parent are stated at or around that figure. In these circumstances, will the UK parent require an audit based on the new audit requirements introduced in 2012? Will the turnover of the subsidiary be attributed to the parent?

Many thanks

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Yes and No

Being as the foreign subsidiary is subject to audit by regulations set in a different country I imagine but am not entirely sure that an audit may be required unless the audit was conducted by a firm with international credibility in which case the audit results should be transferable as the basis for the parent's financial results.

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