These accounts must give a true and fair view of the state of affairs and profit or loss of the company and its subsidiaries dealt with as a whole.
However, in certain circumstances the accounts of a subsidiary need not be incorporated into the group accounts. If directors are of the opinion that:
• It would be impracticable.
• It would occasion delay or expense..
• It would be misleading
• It would be harmful to the business of the company or any subsidiary.
• It would be of no real value to members.
• The business of the company and that of the subsidiary are so different that the enterprise cannot be treated as one.