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
Trading arrangements: From this statement, it can be inferred that, if a court held that a company acted in a particular instance as an agent of its holding company, the veil

Name the Types of  state  immunity The state  immunity  is  categorized  into  two:  A) Absolute  immunity   B) Restrictive immunity.

Explain the Laws and rules of atlantic case There are several laws and rules which were applicable to this situation: Paris Convention on Aerial Navigation of 1919 H

Question : In July 2007 Amin sent a brochure of a hotel he was running and managing to Sam, a travel agent and included the following statement: "The hotel provides a range of

QUESTION 1 (a) List down the remedies that are available for breach of contract (b) Elaborate on two of them QUESTION 2 What are the duties of seller and buyer under

Describe in detail about the - policy makers Elections are used to choose the policy makers, it is not the only mechanism. Since the authority to make decisions may be vested i

Gist of Lord Buckleys statement: The gist of Lord Buckley's statement, above, may be summarised as follows: The judges will not regard a transaction undertaken by a company as

Determine the levels of Policy perspective Policy perspective, analysis can be made on three levels, state-system level, the nation-state level and the decision making level. T

Describe in detail about the European Monetary Union The experimental lab for international policy coordination has been the European Union where monetary unification of member

State the third approach to antitrust agency A third approach to antitrust agency interaction is the bilateral cooperation and coordination theory. This model for how an agency