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