We are a £7m charity in the education charity sector registered as a charity & a company.
We have a fully owned subsidiary that was set up some time ago. And it has never traded. We have never done any accounts for that entity. There is a bank account & a bank balance of approx. £100. That's it.
As per FRS 102 section 9 it seems like we have to prepare group accounts & not a single company accounts. Is that right? Have I missed something? What do you think?
Any advice?
Thanks
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Replies (5)
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You always have to do accounts for the subsidiary. That’s obvious. If you have “never done any accounts” for it, as you say, you will probably find that it has been struck off for non-filing if you check.
You always have to do accounts for the subsidiary. That’s obvious. If you have “never done any accounts” for it, as you say, you will probably find that it has been struck off for non-filing if you check.
Thanks John. I think i panicked. I joined the organisation very recently. I just checked with my colleague who pointed out that we have filed "micro-company" accounts at the companies house. So in that regard we are OK.
So back to the main question... do we need to prepare a set of consolidated accounts irrespective of trading status? I am wondering whether there was an exemption.
Seems like I will have to talk to the auditors tomorrow :)
Seems like I will have to talk to the auditors tomorrow :)
good place to start, rather than a bunch of randoms off the interweb...
Bud123 wrote:
Seems like I will have to talk to the auditors tomorrow :)
good place to start, rather than a bunch of randoms off the interweb...
If all did that there wont be a need for this kind of forums though.
People would prefer to check out others' experiences, thoughts also...
Are you copying & pasting your standard answer to all posts here? Please feel free to NOT answer any of my posts!! Thank you!
The answer is, "No, you do not need to prepare consolidated group accounts."
And the reason will be on the grounds of immateriality, allowing you to exclude the sub from consolidation. Once that sub is excluded, you don't need to prepare consolidated accounts.
I'm not 100% sure, but you should probably refer to this fact in the accounts however, to present the full picture.