Explain the Main Legislative Requirements for Group Financial Statements

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The Answer is Section 295(2)of the Corporations Act 2001 states that,if required by the accounting standards,the four consolidated statements of comprehensive income,changes in equity,financial position,and cash flows are to be provided.Section 297 further states that: The financial statements and notes for a financial year must give a true and fair view of: (a)the financial position and performance of the company,registered scheme or disclosing entity and,(b)if consolidated financial statements are required,the financial position and performance of the consolidated entity.A consolidated entity is defined in the Corporations Act 2001 as "a company,registered management investment scheme or disclosing entity together with all the entities it is required by accounting standards to include in consolidated financial statements".AASB 127: Consolidated and Separate Financial Statements states that group accounts must be presented as one set of accounts.Paragraph 4 defines consolidated financial statements as "the financial statements of a group presented as those of a single economic entity".Further,para.12 requires that the "consolidated financial statements shall include all subsidiaries of the parent".

Explain the Main Legislative Requirements for Group Financial Statements

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