Section 214: Contents and form of group financial statements

214. Contents and form of group financial statements (1) Subject to the other provisions of this section, the group financial statements of a group shall present fairly the financial position, financial performance and, where stated, the cash flow of the group. (2) The financial statements of a group shall, in the case of public companies and private companies— (a) be prepared in accordance with and comply with the International Accounting Standards; and (b) comply with any requirements which apply to the group financial statements of public companies and private companies under any other enactment. C35 – 131 [Issue 4] Companies Act (3) The financial statements of the group shall, in the case of a small private company, comply with any regulations made under this Act or any accounting standards issued or regulations made under the Financial Reporting Act which prescribe the form and content of group financial statements of small private companies. (4) Where a subsidiary becomes a subsidiary of a company during the accounting period to which the group financial statements relate, the consolidated profit and loss statement, or the consolidated income and expenditure statement for the group, shall relate to the profit or loss of the subsidiary for each part of that accounting period during which it was a subsidiary, and not to any other part of that accounting period. (5) Subject to subsection (4)— (a) in the case where the balance sheet date of a subsidiary company is different from the balance sheet date of its parent company, the financial statements of the subsidiary company may be incorporated into the group financial statements provided that the difference between the reporting dates does not exceed 3 months; or (b) in any other case, the group financial statements shall incorporate the interim financial statements of the subsidiary completed in respect of a period that is the same as the accounting period of the company. (6) Subject to subsections (2) and (4), group financial statements shall incorporate the financial statements of every subsidiary of the company. (7) Where, in complying with the standards or regulations referred to in subsections (2) and (3), the financial statements do not present fairly the matters to which they relate, the directors shall add such information and explanations as are necessary to present fairly those matters. (8) Notwithstanding subsection (2), any group of companies which does not qualify as a public interest entity under the Financial Reporting Act may prepare its group financial statements in accordance with the International Financial Reporting Standards for SMEs, issued by the International Accounting Standards Board. [S. 214 amended by s. 4 (o) of Act 20 of 2002 w.e.f. 1 December 2001; s. 83 (2) of Act 45 of 2004 w.e.f. 20 January 2005; s. 8 (e) of Act 20 of 2011 w.e.f. 16 July 2011.] Sub-Part D – Registration of Financial Statements