Consolidated v Group
The companies act defines financial statement as including group and consolidated in the case of a group. The words "in case of a group" are important. First financial statements include group financial statements. Second consolidated in case of a group. The second part seems to be saying the same thing if one believes that consolidated and group mean the same thing. Therein lies my question - are they the same thing. Because if they are the second part is redundant because consolidated and group mean the same thing.
I believe the companies act is telling us that they do not mean the same thing as then why would they use the different names. What is being said is that financial statements includes group and that they must be consolidated to be called group. So there is only group financials and to get to group the must be consolidated in the manner required by IFRS 10. So when IFRS 10 says if one company controls another they must be consolidated. What is being said - is to achieve group financial statements they must be consolidated. Consolidation is the means Group is the end result.
So consolidated financial statements is referring to a process needed to end up with group financial statements. Meaning when you read the word consolidated that's not the name of the financial statements but the process to achieve the collective name for consolidated financial statements which is group.
Your thoughts?
I believe the companies act is telling us that they do not mean the same thing as then why would they use the different names. What is being said is that financial statements includes group and that they must be consolidated to be called group. So there is only group financials and to get to group the must be consolidated in the manner required by IFRS 10. So when IFRS 10 says if one company controls another they must be consolidated. What is being said - is to achieve group financial statements they must be consolidated. Consolidation is the means Group is the end result.
So consolidated financial statements is referring to a process needed to end up with group financial statements. Meaning when you read the word consolidated that's not the name of the financial statements but the process to achieve the collective name for consolidated financial statements which is group.
Your thoughts?
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