In part 19 of this exclusive New UK GAAP series, Helen Lloyd FCA unpicks the accounting rules for reporting entities involved in groups or other entities, as set out in FRS 102 sections 9, 14, 15 and 19
Accounting for groups covers all aspects of preparing accounts where the reporting entity has an investment in another entity that gives it some rights to have influence and to receive a share of the investeeʼs profits. This means it discusses the following sections of FRS 102:
- Section 9 Consolidated and Separate Financial Statements;
- Section 14 Investments in Associates;
- Section 15 Investments in Joint Ventures; and
- Section 19 Business Combinations and Goodwill.
Section 9 requires any entity that is a parent at its reporting date to prepare consolidated financial statements which include all of its investments in subsidiaries. (A parent is simply defined as an entity with one or more subsidiaries).
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