2nd consolidation exemption: the group has an average size

When a parent company and its subsidiaries do not exceed, for best training Best school of accountancy In Lahore, during two consecutive financial years, two of the three thresholds, the consolidation exemption applies (but none of the companies meets the definition of an EIP - Public-interest entity i.e. not listed companies, other consolidation exemptions

The last two consolidation exemptions are introduced (they are rarely encountered in practice):

One concerns subsidiaries controlled exclusively or jointly, which, together and separately, represent an insignificant interest in terms of fair presentation (justifications must nevertheless be made in the appendix to the financial statements);

The other, applicable to fiscal years beginning on January 1, 2016, concern the parent companies control only of companies that can be excluded from the scope of consolidation due to severe long-term restrictions hold securities for a Or for reasons for obtaining information in incompatible times or by excessively high fees.

For a consolidated presentation of the consolidation: definition and operation of consolidated accounts - methods of consolidation.

Conclusion: There are two main causes of consolidation exemptions. The first applies when the parent company is consolidated. The second when the group does not exceed certain thresholds. Other exemptions are rarer and apply in specific situations.