Section 482 | Actual financial statements drawn up on acceptable principles but consolidating wrong subsidiaries

(1)This section applies where financial statements of a worldwide group for a period drawn up by or on behalf of the ultimate parent are drawn up on acceptable principles but—

(a)do not consolidate one or more entities that are IAS subsidiaries, or

(b)consolidate one or more entities that are not IAS subsidiaries.

(2)In this section “IAS subsidiary”, in relation to a period, means an entity which would be required to be consolidated with those of the ultimate parent in IAS financial statements of the group for the period.

(3)For the purposes of this Part (apart from this section)—

(a)the financial statements mentioned in subsection (1) are to be ignored, and

(b)consolidated financial statements of the ultimate parent and its IAS subsidiaries are treated as having been drawn up in respect of the period.

(4)The financial statements treated by subsection (3)(b) as drawn up are treated as drawn up in accordance with the same accounting principles and practice as the financial statements mentioned in subsection (1).

(5)In this section a reference to financial statements consolidating the results of an entity is to consolidating its results with those of the ultimate parent as the results of a single economic entity.