Hello
I have one question
Assume there is an individual investor with the following investments
1. A sole proprietorship business which is 100% owned by this investor alone
2. In a private limited company in which he has a controlling interest by owning 60% of the total shares of the company
3. In another company in which he has a shareholding of 20% of the total shares of the company
My question
Is there a need to prepare consolidated financial statements in this case?
Consolidated Financial Statements
Re: Consolidated Financial Statements
Probably depends mostly on local company law.
Assumes that there is actually a group - the 100% and 60% investments are via a holding company or personally?
Assumes that there is actually a group - the 100% and 60% investments are via a holding company or personally?
Re: Consolidated Financial Statements
Does your company law require individual investors to prepare financial statements under IFRS?
Re: Consolidated Financial Statements
No.
My ambiguity arises due to the fact that in our country IFRS applies to sole proprietorship businesses also (based on quantitative thresholds of revenue and total assets). As I indicated the individual has a sole proprietorship business. And as per the laws of our country, the individual and the sole proprietorship business are not legally separate.
My ambiguity arises due to the fact that in our country IFRS applies to sole proprietorship businesses also (based on quantitative thresholds of revenue and total assets). As I indicated the individual has a sole proprietorship business. And as per the laws of our country, the individual and the sole proprietorship business are not legally separate.
Re: Consolidated Financial Statements
This is a question to your local lawyers I'm afraid
Re: Consolidated Financial Statements
that concept is astonishing to me....so in effect a natural person is a parent/holding company.
Maybe if a person has such large holdings, a holding company is a good idea anyway...
which country is it?
Maybe if a person has such large holdings, a holding company is a good idea anyway...
which country is it?