Group accounts and MCT: Difference between pages

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imported>Doug Williamson
(Link to Treasurer article.)
 
imported>Doug Williamson
(Link with CertICM page.)
 
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''Financial reporting''.
Member of the Association of Corporate Treasurers.
Group accounts are an example of the 'substance over form' principle in financial reporting.


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.  


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.  
 
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.
 
 
Consolidated group accounts report the activities of subsidiaries controlled by the holding company as part of the group's total activities. 
 
They also treat the assets and liabilities of the subsidiaries as assets and liabilities of the group.
 
 
Appropriate proportionate interests in associated undertakings and joint ventures are also incorporated into the consolidated group accounts.
 
Preparing consolidated group accounts involves two stages:
 
#''Aggregation'' to add up the individual assets and liabilities of all of the companies in the group.
#''Consolidation adjustments'' to remove, for example, intercompany trading and indebtedness from the consolidated figures for the group.
 
 
The holding company of a group of companies is also sometimes known as the 'parent' company.
 
 
Businesses which are organised under a single company, rather than a group of companies, are sometimes known as 'divisionalised'.
 
(Their business units being a number of divisions, rather than a number of different companies.)




== 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]]
* [[Parent company]]
* [[Subsidiary]]
* [[Substance over form]]
* [[Legal implications of cash pooling structures]]
 
 
[[Media:Apr15TTqualifications45-47.pdf| All together now, The Treasurer student article]]


[[Category:Accounting,_tax_and_regulation]]
[[Category:Ethics]]

Revision as of 20:49, 26 March 2016

Member of the Association of Corporate Treasurers.

The MCT Advanced Diploma is the full membership qualification for the ACT and leads to the designatory letters MCT.

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.


See also