Group accounts

Financial reporting. Consolidated group accounts involve treating the net assets and activities of subsidiaries controlled indirectly by the holding (or parent) company as if they were part of the holding company’s own net assets and activities. Appropriate proportionate interests in associated undertakings and joint ventures are also incorporated into the group accounts.

The preparation of consolidated group accounts involves two stages:

1. Aggregation to add up the individual assets and liabilities of all of the companies in the group.

2. Consolidation adjustments to remove, for example, intercompany trading and indebtedness from the consolidated figures for the group.

See also

• Accounting exposure
• Accounting group
• Aggregation
• Balance sheet exposure
• Consolidation
• Consolidation adjustments
• Goodwill on consolidation
• Group
• Income statement exposure
• Merger reserve
• Net assets
• Parent company
• Subsidiary