SCHEDULE 5OVERSEAS COMPANIES GROUP ACCOUNTS
11
1
The interest of an undertaking in an associated undertaking, and the amount of profit or loss attributable to such an interest, shall be shown—
a
by the equity method of accounting, or
b
if the generally accepted accounting principles under which the accounts have been prepared allow it to be accounted for by another method, by that method.
2
If an interest is accounted for in accordance with sub-paragraph (1)(b), the method used must be disclosed in the notes to the accounts.
3
Where the associated undertaking is itself a parent undertaking, the net assets and profits or losses to be taken into account are those of the parent and its subsidiary undertakings (after making any consolidation adjustments).