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Group accounts


The accounts which a holding company is required to file with reference to the group which it controls. Although consolidated accounts are the commonest form of group accounts, there are circumstances in which this particular form is impracticable or not judged to be the best way of presenting the true picture. This can happen for a variety of reasons, the most frequent being the basic incompatibility of certain companies within the group, or unavoidable differences in periods of account. In such cases the information to shareholders that the law requires may be disseminated in another manner - in the last resort it may be necessary to publish separate accounts for each subsidiary company, under one cover and with explanatory notes. The Department of Trade and Industry maintains a watch over such matters and will insist that exceptions to the rule of consolidation are both few and genuinely necessary.

Reference: The Penguin Business Dictionary, 3rd edt.