Under specific regulations such as the Companies Act and applicable financial reporting standards in the UK and the Republic of Ireland, certain parent companies may be exempt from preparing consolidated financial statements.
A parent undertaking and its subsidiary or subsidiaries. In UK tax law, two or more companies constitute a group where one company holds more than 50% of the shares in the other(s). This test is usually applied to the voting share capital only. Where there is a group of companies, the availability of the lower rates of corporation tax is restricted.
A small group is a classification under the Companies Act where specific size criteria meet and allow exemptions for certain financial reporting requirements.
