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FRS 2 Accounting for Subsidiary Undertakings

Issued July 1992. Effective for accounting periods ending on or after 23 December 1992. Amended December 2004.

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FRS 2 has been superseded by FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland for accounting periods beginning on or after 1 January 2015. For more information visit:

Synopsis

The purpose of consolidated financial statements is to provide financial information about the economic activities of a group. FRS 2 sets out:

  • the conditions under which a parent undertaking should prepare consolidated financial statements 
  • the manner in which consolidated financial statements should be prepared, and
  • the very limited situations where a subsidiary may be excluded from consolidation.

Last updated 21 June 2015