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Writer's pictureThomas Tsang

Consolidation

When a holding company with a subsidiary or subsidiaries, it needs to prepare consolidation and issue consolidated financial statements per SFRS110, subject to exemption that the company itself is a wholly owned or majority owned subsidiary of another company. The holding company will prepare consolidated financial statements and publicly available. The shareholders should agree with it.


The non-consolidation of subsidiary is departure from SFRS and most likely adverse opinion on the auditor.


Separate financial statements is issued in addition to the consolidated financial statements of the company. It cannot be issued without the issue of the consolidated financial statements.


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