ACCA FR Syllabus A. The Conceptual And Regulatory Framework - A single economic unit - Notes 1 / 10
Parent and Sub are deemed to be parts of the SAME company from a group perspective
However LEGALLY each member is a separate legal entity and therefore the group itself IS NOT a separate legal entity
This focuses on a criticism of group accounts where the assets and liabilities of P and S are added together
This can give the impression that all of the group’s assets would be available to discharge all of the group’s liabilities
This is not the case