Syllabus A4f

Co-terminous Year-ends and Accounting policies

Ideally P and S should have the same year end and accounting policies

  • The accounts of the parent and its subsidiaries (used for the group accounts) should all have the same reporting date, unless it is impracticable to do so

  • If it is impracticable, adjustments must be made for the effects of significant transactions or events that occur between the dates of the subsidiary's and the parent's year-end.

  • The difference must never be more than 3 months

  • Consolidated financial statements must be prepared using uniform accounting polices for like transactions and other events in similar circumstances