Analyse the circumstances under which the group accounts of a company need not deal with a subsidiary of the company.

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.

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