imported>Doug Williamson |
imported>Doug Williamson |
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| ''Financial reporting''.
| | Member of the Association of Corporate Treasurers. |
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| Group accounts are an example of the 'substance over form' principle in financial reporting.
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| Some large businesses are organised as a single company. Other comparable businesses are structured as a group of companies, with a top holding company and other subsidiary companies.
| | The MCT Advanced Diploma is the full membership qualification for the ACT and leads to the designatory letters MCT. |
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| If group accounts were not prepared, it would be very difficult to make appropriate comparisons.
| | The MCT qualification is designed to make a strategic impact on your career, for your company and in your thinking, as the leading senior level professional qualification in treasury, risk management and corporate finance. |
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| The purpose of group accounts is to report the results and financial position of the businesses in a way that makes them readily comparable, even though they have different legal structures. | |
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| Consolidated group accounts report the activities of subsidiaries controlled by the holding company as part of the group's total activities.
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| They also treat the assets and liabilities of the subsidiaries as assets and liabilities of the group.
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| Appropriate proportionate interests in associated undertakings and joint ventures are also incorporated into the consolidated group accounts.
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| Preparing consolidated group accounts involves two stages:
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| #''Aggregation'' to add up the individual assets and liabilities of all of the companies in the group.
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| #''Consolidation adjustments'' to remove, for example, intercompany trading and indebtedness from the consolidated figures for the group.
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| The holding company of a group of companies is also sometimes known as the 'parent' company.
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| Businesses which are organised under a single company, rather than a group of companies, are sometimes known as 'divisionalised'.
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| (Their business units being a number of divisions, rather than a number of different companies.)
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| == See also == | | == See also == |
| * [[Accounting exposure]] | | * [[AMCT]] |
| * [[Accounting group]] | | * [[Association of Corporate Treasurers]] |
| * [[Aggregation]]
| | * [[CertICM]] |
| * [[Balance sheet exposure]] | | * [[Certificate in Treasury Fundamentals]] |
| * [[Consolidation]] | | * [[Certificate in Treasury]] |
| * [[Consolidation adjustments]] | | * [[Diploma in Treasury Management]] |
| * [[Goodwill on consolidation]] | | * [[FCT]] |
| * [[Group]] | | * [[TMA]] |
| * [[Income statement exposure]] | | * [[Suggested solution]] |
| * [[Merger reserve]] | |
| * [[Net assets]]
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| * [[Parent company]]
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| * [[Subsidiary]]
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| * [[Substance over form]]
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| * [[Legal implications of cash pooling structures]]
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| [[Media:Apr15TTqualifications45-47.pdf| All together now, The Treasurer student article]]
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| [[Category:Accounting,_tax_and_regulation]] | | [[Category:Ethics]] |