Part 15Accounts and reports

Chapter 4Annual accounts

Group accounts: general

407Consistency of financial reporting within group

1

The directors of a parent company must secure that the individual accounts of—

a

the parent company, and

b

each of its subsidiary undertakings,

are all prepared using the same financial reporting framework, except to the extent that in their opinion there are good reasons for not doing so.

2

Subsection (1) does not apply if the directors do not prepare group accounts for the parent company.

3

Subsection (1) only applies to accounts of subsidiary undertakings that are required to be prepared under this Part.

4

Subsection (1) does not require accounts of undertakings that are charities to be prepared using the same financial reporting framework as accounts of undertakings which are not charities.

5

Subsection (1)(a) does not apply where the directors of a parent company prepare IAS group accounts and IAS individual accounts.