Group account

Each individual company
within a group required to produce its own accounts and to submit these to its
shareholders, file them with Corporate Affairs Commission (CAC) and submit them
to tax authorities. Hence any shareholder of the holding company will have
access to these figures.

However, as the fortunes of
the holding company are so closely interwoven with those of its subsidiaries
and sub-subsidiaries, some form of composite or consolidated statement becomes necessary.
The purpose of group accounts
is to provide the holding company’s shareholder with a true and fair view of
the affairs of the group as a whole.
Content of group accounts
(a)      Holding company’s balance
sheet
(b)      Holding company’s profit and loss account
(c)       And either – consolidated profit and loss account or –
holding company’s profit and loss account framed as a consolidated.
            Profit and loss account.
            and /or – a statement of the holding company’s of profits
of subsidiaries not consolidated.

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