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AC 506 lecture 8

AC 506 lecture 8. Accounting policies and consolidation periods Group account disclosure requirements Sources for disclosure requirements: Relevant FRSs (2, 7, 9, 10) Barker/O’hOgartaigh - look at ‘disclosures’ in the inde x. Uniform accounting policies.

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AC 506 lecture 8

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  1. AC506 lecture 8 • Accounting policies and consolidation periods • Group account disclosure requirements • Sources for disclosure requirements: • Relevant FRSs (2, 7, 9, 10) • Barker/O’hOgartaigh - look at ‘disclosures’ in the index

  2. Uniform accounting policies • FRS 2 requires that uniform accounting policies be used when consolidating parent and subsidiaries undertakings - rationale • Policies will normally be those of the parent • Single entity policies can and often differ • True and fair justification for departure from uniform policies

  3. Coterminus accounting periods • FRS 2 and legislative general principle - Parent, subsidiaries and associates dealt with in the group accounts should have co-terminus financial year-ends • Non-coterminus year ends => choice of the following: • Include subsidiary interim statements to the parent’s year end • Subsidiary financial statements provided that year end of subsidiary not more than three months before the parent year end (must check for any material event between subsidiary year end and parent year end - accounting treatment in accordance with SSAP 17)

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