When must a parent company prepare group accounts under the Companies Act 1985?
A parent company must prepare group accounts for a financial year unless its group qualifies as a small or medium-sized group (see section 248). Generally, a company qualifies as ‘small’ or ‘medium-sized’ in its first financial year, or in any subsequent financial year if it fulfils the conditions in that year and the year before. If the company ceases to be small or medium-sized, the exemption continues for the first year that the company does not fulfil the conditions.
