Subsidiary and Substance over form: Difference between pages

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imported>Doug Williamson
(Update for FRS 102)
 
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'''1. '''''Accounting''. 
''Accounting.''  


A parent undertaking has a subsidiary for accounting purposes if it has control over the other entity.
The accounting principle that financial transactions and financial relationships are dealt with and presented in accordance with their commercial substance.


The subsidiary is the entity (usually a company) which is controlled by the parent undertaking (also known as the group holding company).
(Even if this differs from the legal form of the transaction.)
 
 
Relevant accounting standards include Sections 2, 11, 12 and 23 of FRS 102.


'''2.'''  Of lesser importance.


== See also ==
== See also ==
* [[Acquisition accounting]]
* [[FRS  102]]
* [[Group]]
* [[Group accounts]]
* [[Holding company]]
* [[Parent company]]
* [[Strategic business unit]]
* [[Subsidiary undertaking]]
* [[Subsidiarity]]

Revision as of 11:38, 6 November 2015

Accounting.

The accounting principle that financial transactions and financial relationships are dealt with and presented in accordance with their commercial substance.

(Even if this differs from the legal form of the transaction.)


Relevant accounting standards include Sections 2, 11, 12 and 23 of FRS 102.


See also

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