Group accounts exemption

Group accounts exemption

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Company A owns 20% of company B and also 40% of company C

Assuming the group [A+B+C] is below the group accounts threshold what disclosure do I need in the accounts of company A in relation to the 2 subsidiaries?

Company A has the ability to exert significant influence over company B & C

Thanks all in advance

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By Euan MacLennan
12th Feb 2012 09:37

What group?

"Company A owns 20% of company B and also 40% of company C"

As neither is a 50+% shareholding, neither B nor C is a subsidiary, so there is no group and no possibility of group accounts.

However, 20% is the threshold for an associated company.  I am not in the office and I cannot remember the detailed disclosure requirements, but they are more extensive than just a fixed asset investment.  I think you have to disclose the names of companies B & C and possibly, their retained profits.

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By newstarter
13th Feb 2012 08:33

Thanks very much Euan.. much appreciated

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