Some clarification would be much appreciated! In assessing small group thresholds, do I only look at the immediate subsidiaries of a parent company (the part of the group headed by it) or do I have to assess the whole group? I.e companies above it as well? The entity in question sits in the middle of a 4-level group structure chart, so has its own subsidiaries, but also has companies above it and the ultimate parent is 2 levels up. The company meets the small company thresholds, I need to check the small group thresholds, but want to be clear that it is only the immediate subsidiaries I take into account and not the whole group (including those above it). Any advice much appreciated, thank you!
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S.479(4) CA/06: “Group
S.479(4) CA/06: “Group company” means a company that is a parent company or a subsidiary undertaking, and (b)“the group”, in relation to a group company, means that company together with all its associated undertakings. For this purpose, undertakings are associated if one is a subsidiary undertaking of the other or both are subsidiary undertakings of a third undertaking.
But do have a read of s.479A, CA/06 as well.
It depends on why you're looking
Hi Ginab. I think the answer here is that s383 and s479 are looking at different things, and hence define a group differently. If you're looking at whether small company/group accounting exemptions are available (e.g. not having to consolidate) then you're in s383 territory and it's the company plus its subsidiaries that you need to consider. If you're looking at the question of whether your companies have an audit requirement then it's s479 and you need to consider every group company both above and below - i.e. you cannot make a decision on the availability (or not) of audit exemption until you know if the entire global group would qualify as small.