Group accounts, Business Law and Ethics

Group Accounts:

Section 150 requires a company which has subsidiaries to lay before the company in general meeting accounts or  statements dealing with the state of affairs and profit or loss of the company and the subsidiaries at the time when the company's own balance sheet and profit and loss account are laid before the company's general meeting. The group accounts are to be prepared in accordance with the provisions of Sections 150 - 154 and paragraphs 17 - 18 of the Sixth Schedule to the Companies Act so as to appear "as the accounts of an actual company".

These provisions constitute what is regarded in a loose  sense as an instance of "lifting the veil" because a  member (the holding company) is obliged to incorporate into its balance sheet the assets and liabilities of the company of which it is a member (the subsidiary company) as if they were its own assets and liabilities. This is a modification of the general principle that a company's assets and liabilities are not a member's assets and  liabilities and would not therefore be incorporated into the member's own balance sheet.

Posted Date: 1/12/2013 2:06:42 AM | Location : United States







Related Discussions:- Group accounts, Assignment Help, Ask Question on Group accounts, Get Answer, Expert's Help, Group accounts Discussions

Write discussion on Group accounts
Your posts are moderated
Related Questions
Star Club is a casino established in mid-eighties in Sri Lanka. Since it is in the business for more than 25 years it is famous among local and foreign gamblers. John has been work

1. Sometimes laws are created that are done for ethical reasons. For instance, it is wrong to pollute, so Congress passed the Environmental Protection Act, which punished those tha

Question 1: "A revolutionary change is occurring in the theory and practice of public administration. The approach known as New Public Management is seen by many as the new par

Explain UNCTOC UNCTOC identified the concept of an organized crime. A crime is termed as an "Organized Crime" when people in different countries and/or of different national

Question 1: (i) Explain clearly the difference between Individual Bargaining and Collective Bargaining highlighting with examples the contexts in which each of them applies.

What is a condition precedent? Provide me with an example.

Question 1: (a) Explain the concept of Salomon Principle and critically analyse its importance in company Law. (b) Discuss why and in what circumstances the court will pierc

Judicial elucidation of Acts: In fact the other points to be noted in relation to judicial elucidation of Acts are as follows: like; (a)   There is no clause of an Act is t

ADVANTAGES: Therefore some of the advantages or strong point of delegated legislation are:as; (a)   Compensation of lost Parliamentary time Conversely parliamentarians a

Executed Consideration - Types of Consideration Actually Executed consideration is constituted through something done by the plaintiff because to a promise made with the defen