Calculation of group gross assets for audit exempt

Should the group gross assets be calculated before or after consolidations adjustments.

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I'm trying to determine whether a group qualifies for audit exemption on the basis of it's gross assets (it passes easily on turnover). a summary of the balance sheets is as follows:

Parent: Only asset is investment in subsidiary £2.1m

Subsidiary: Total gross assets = £4.0m

Consolidated accounts gross assets = £4.0 m (parent co asset is eliminated on consolidation).

There are no Intra group balances.

The legislation refers to the "Aggregate" gross assets. I can't work out whether this means consolidated (i.e. £4.0m) or literally added together (i.e. £6.1m). In this case it the crucial decider in whether or not an audit is required. Common sense tells me it would be the consolidated position, but I can't be sure.

Help much appreciated!

 

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