1974-HKRS28-16-22_Part06 — Page 2

Contents of group accounts. ad c. 38. 8. 1.52.

Tentb Schedule.

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(2) If the company's directors are of opinion that it is better for the purpose-

(a) of presenting the same or equivalent in- formation about the state of affairs and profit or loss of the company and those subsidiaries; and

(b) of so presenting it that it may be readily

appreciated by the company's members.

the group accounts may be prepared in a form other than that required by subsection (1), and in partic- ular may consist of more than one set of con- solidated accounts dealing respectively with the com- pany and one group of subsidiaries and with other groups of subsidiaries, or of separate accounts deal. ing with each of the subsidiaries, or of statements expanding the information about the subsidiaries in the company's own accounts, or any combination of those forms.

(3) The group accounts may be wholly or partly incorporated in the company's own balance sheet and profit and loss account,

126, (1) The group accounts laid before a com- pany shall give a true and fair view of the state of affairs and profit or loss of the company and the subsidiaries dealt with thereby as a whole, so far as concerns members of the company.

(2) Where the financial year of a subsidiary does not coincide with that of the holding company, the group accounts shall, unless the Financial Secre- tary on the application or with the consent of the holding company's directors otherwise directs, deal with the subsidiary's state of affairs as at the end of its financial year ending with or last before that of the holding company, and with the subsidiary's profit or loss for that financial year.

(3) Without prejudice to subsection (1), the group accounts, if prepared as consolidated accounts, shall comply with the requirements of the Tenth Schedule, so far as applicable thereto, and if not so prepared shall give the same or equivalent informa» tion:

Financial Year of holding company and sub- sidiary.

1948 c. 36. *. 153.

Staternent in holding company's

accounts of identities and places of incor- poration of subsidiaries, and partic ulars of share- holdings therein.

1967 c. 8, *, 3.

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Provided that the Financial Secretary may, on the application or with the consent of a company's directors, modify the said requirements in relation to that company for the purpose of adapting them to the circumstances of the company.

127. (1) A holding company's directors shall secure that except where in their opinion there are good reasons against it, the financial year of cach of its subsidiaries shall coincide with the company's own financial year.

(2) Where a holding company or a holding company's subsidiary wishes to extend its financial year so that the subsidiary's financial year may end with that of the holding company, and for that pur- pose to postpone the submission of the relevant accounts to a general meeting from one calendar year to the next, the Registrar may on the applica- tion of the directors of the company whose financial year is to be extended direct that, in the case of that company, the submission of accounts to a general meeting, the holding of a general meeting in order to comply with section 111(1), or the making of an annual return shall not be required in the earlier of the said calendar years.

128. (1) Subject to the provisions of this sec. tion, where, at the end of its financial year, a com- pany has subsidiaries, there shall, in the case of cach subsidiary, be stated in, or in a note on, or state- ment annexed to, the company's accounts laid before it in general meeting-

(a) the subsidiary's name:

(6) the country in which it is incorporated; and (c) in relation to shares of each class of the subsidiary held by the company, the iden- tity of the class and the proportion of the nominal value of the issued shares of that class represented by the shares held (2) For the purposes of subsection (1)— (a) shares of a body corporate shall be treated as being held, or as not being held, by another such body if they would, by virtue