Article 6 The consolidated accounts condition

(1)

The consolidated accounts condition is satisfied if—

(a)

consolidated accounts prepared for a person who controls all of the other members of the group (or, where the person is or will be a member of the group, all of the other members apart from himself) would be required by generally accepted accounting practice to include accounts for the specified body as his subsidiary; and

(b)

consolidated accounts prepared for a third party would not be required by generally accepted accounting practice to include accounts for the specified body as his subsidiary.

(2)

For the purpose of the application of paragraph (1) at a particular time—

(a)

the reference to consolidated accounts is a reference to consolidated accounts—

(i)

for a period including that time, and

(ii)

insofar as they relate to that time,

(b)

any principle of generally accepted accounting practice that permits accounts of a subsidiary undertaking to be excluded from a consolidation as being immaterial shall be disregarded;

(c)

the reference to consolidated accounts prepared for a person is a reference to consolidated accounts of a kind that could be prepared for him in accordance with generally accepted accounting practice, for which purpose it does not matter—

(i)

whether accounts are actually prepared for him (whether for a particular period or at all), or

(ii)

in particular, whether he is required to prepare accounts.

(3)

In this article “generally accepted accounting practice”—

(a)

has the meaning given by section 50(1) of the Finance Act 2004^f1;

(b)

in relation to any time when that section does not have effect, has the meaning given by section 836A of the Income and Corporation Taxes Act 1988^f2.

Annotations

Footnotes

f1: 2004 c. 12.
f2: 1988 c. 1; section 836A was inserted by section 103(2) of the Finance Act 2002 (c. 23).