consolidated accounts dealing with balance sheet items where subsidiary has differnt year end to parent


have a parent company and two subsidiaries to consolidate, all with different year ends. The parent has a year end of may 2013, and two subsidiaries June 2013 and October 2013 respectively.

can anyone tell me how i would treat balance sheet items such as Assets when consolidating a set of accounts, can i take the balance sheet date value for the assets in each set of accounts?

i believe i need to prepare an interim set of accounts for the subsidiary as its year end falls 5 months after the parents year end. How would i consolidate these accounts?

any advise is appreciated

  • Both FRS 2 and Companies Act 2006 would prefer all year ends to be the same.

    Failing that, you can consolidate subsidiaries if their year ends are no more than three months before the year end of the parent. This is clearly not so in your case.

    The final option is that the subsidiaries will have to prepare interim financial statements to coincide with the parent's year end.

    Best route would be to formally change year ends of subsidiaries to match the parent's year end.