Co-operative and Community Benefit Societies Act 2014

98 Group accounts

(1) This section applies to a registered society (“the parent society”) which has subsidiaries at the end of a year of account (“the relevant year”).

(2) The society must ensure that accounts (“group accounts”) are prepared for that year dealing with the state of affairs and income and expenditure of the society and its subsidiaries.

(3) The group accounts must give a true and fair view of the state of affairs and income and expenditure of the society and the subsidiaries dealt with as a whole, so far as concerns members of the society.

(4) The group accounts must comprise such accounts and contain such particulars as the Treasury may by regulations prescribe.

The regulations may make different provision for different cases or circumstances.

(5) If a subsidiary’s year of account does not coincide with that of the parent society, the group accounts must deal with—

(a) the subsidiary’s state of affairs as at the end of its year of account ending with or last before the end of the relevant year, and

(b) its income and expenditure for that year of account.

This is subject to any direction made by the FCA, on the application of the parent society’s committee or with the consent of that committee.

(6) The parent society must submit the group accounts for the relevant year for audit to the auditors appointed to audit the society’s accounts and balance sheet for that year.

(7) The auditors must make a report to the society on the group accounts, stating—

(a) whether the accounts have been properly prepared in accordance with the requirements of this Part and any regulations made under it;

(b) whether, in their opinion, the accounts give a true and fair view of the matters mentioned in subsection (3).

(8) The parent society must send the group accounts and a copy of the auditor’s report on them to the FCA together with its annual return for the relevant year.