The Companies Act 2006 (CA06) now requires medium-sized groups to prepare consolidated (group) accounts.
Under s399 of CA06, group accounts only have to be prepared where, at the end of a financial year, an undertaking is a parent company. A common question asked is whether this includes overseas subsidiaries. If a company is registered in the UK, those subsidiaries would need to be included within the consolidated financial statements.Thresholds
CA06, which is effective for financial periods beginning on or after 6 April 2008, specifies benchmarks for groups to qualify as a ‘small’ group where two out of the following three conditions must be met:
- aggregate turnover must not be more than £6.5m net (£7.8m gross)
- the ag...