11.3 Group accounts

11.3 GROUP ACCOUNTS

Group accounts, also known as consolidated financial statements, refer to the financial statements prepared by a parent company to present the financial performance and position of a group of companies under its control. Group accounts consolidate the financial information of the parent company and its subsidiaries into a single set of financial statements. Subsidiaries to be included in the group accounts are identified based on the concept of control. Control is generally determined by the parent company’s ownership of more than 50% of the voting rights or through other contractual arrangements that provide control.

Consolidated financial statements

The consolidated financial statements typically include the following:

1. Consolidated balance sheet: It presents the group’s assets, liabilities, and equity as of a specific date. It combines the individual balance sheets of the parent company and its subsidiaries.
2. Consolidated income statement: It shows the group’s revenues, expenses, gains, and losses for a specific period. It combines the individual income statements of the parent company and its subsidiaries.
3. Consolidated cash flow statement: It presents the group’s cash inflows and outflows from operating, investing, and financing activities. It consolidates the cash flow statements of the parent company and its subsidiaries.
4. Notes to the consolidated financial statements: These notes provide additional information and disclosures specific to the consolidated financial statements, such as details of subsidiary companies, significant accounting policies, and any non-controlling interests.