Companies Act 1985

250 Modified accounts of holding company

(1) This section applies to a company (" the holding company ") where in respect of a financial year section 229 requires the preparation of group accounts for the company and its subsidiaries.

(2) The directors of the holding company may not under section 249—

(a) deliver accounts modified as for a small company, un less the group (meaning the holding company and its subsidiaries together) is in that year a small group,

(b) deliver accounts modified as for a medium-sized company, unless in that year the group is medium-sized ;

and the group is small or medium-sized if it would so qualify under section 248 (applying that section as directed by subsections (3) and (4) below), if it were all one company.

(3) The figures to be taken into account in determining whether the group is small or medium-sized (or neither) are the group account figures, that is—

(a) where the group accounts are prepared as consolidated accounts, the figures for turnover, balance sheet total and numbers employed which are shown in those accounts, and

(b) where not, the corresponding figures given in the group accounts, with such adjustment as would have been made if the accounts had been prepared in consolidated form,

aggregated in either case with the relevant figures for the subsidiaries (if any) omitted from the group accounts (excepting those for any subsidiary omitted under section 229(3)(a) on the ground of impracticability).

(4) In the case of each subsidiary omitted from the group accounts, the figures relevant as regards turnover, balance sheet total and numbers employed are those which are included in the accounts of that subsidiary prepared in respect of its relevant financial year (with such adjustment as would have been made if those figures had been included in group accounts prepared in consolidated form).

(5) For the purposes of subsection (4), the relevant financial year of the subsidiary is—

(a) if its financial year ends with that of the holding company to which the group accounts relate, that financial year, and

(b) if not, the subsidiary's financial year ending last before the end of the financial year of the holding company.

(6) If the directors are entitled to deliver modified accounts (whether as for a small or a medium-sized company), they may also deliver modified group accounts; and this means that the group accounts—

(a) if consolidated, may be in accordance with Part II of Schedule 8 (while otherwise comprising or corresponding with group accounts prepared under section 229). and

(b) if not consolidated, may be such as (together with any notes) give the same or equivalent information as required by paragraph (a) above;

and Part III of the Schedule applies to modified group accounts, whether consolidated or not.