Consolidating your knowledge about consolidated accounts


Consolidation is a lesson stage where new material is reviewed, and hopefully learning is reinforced. Consolidation can be compared with revision, which takes place at a later time and serves to remind learners.As well as helping learners retain material and reinforcing it, consolidation is an opportunity to clarify and address any doubts.It can also offer a different 'angle' on new language, which is productive for learners with different styles.Exemptions from preparing group financial statements Exemptions from the requirement to prepare group financial statements apply under financial reporting standards (FRSs and IFRSs) and the exemptions as set out in the Act (sections 297 to 303) essentially mirror these exemptions.New Irish GAAP or FRS 102, which is mandatory for accounting periods commencing on or after 1 January 2015, will reform existing GAAP however, the rules contained therein for exemptions from consolidation will remain the same and mirror those in the Act.



A disclosure will have to be made in the holding company’s individual financial statements that the small group consolidation exemption has been availed of.An example of such a disclosure would be: Illustrated disclosure where a company is availing of the small group consolidation exemption: The company has not prepared consolidated financial statements on the basis that it satisfies the criteria as set out in section 297 of the Companies Act, 2014 to qualify as a small group.is exempt from preparing consolidated financial statements where it is a 100% subsidiary of the other holding company or more than a 50% subsidiary of the other holding company and no request for consolidated accounts has been received before 6 months after the end of the financial year in question in aggregate of: Certain requirements must be met in order to avail of either of these exemptions such as certain, specific disclosures in the lower holding company’s individual financial statements (outlined below); that the exempted holding company and all of its subsidiaries are included in the group accounts of the larger group; that those group accounts are drawn up and audited in accordance with applicable EU law or IFRS; and that the consolidated financial statements of the higher holding company are delivered to the Registrar.Another important fact in the case of groups where the ultimate parent entity is a non-EEA entity is that the consolidated accounts must be audited in lines with the laws of the relevant state under which they are drawn up.


Consolidating your knowledge about consolidated accounts comments


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