Section 379 CAMA 2020
Section 379 Companies and Allied Matters Act is about Group financial statements of holding company. It is under Chapter 14 (Financial statements, audit and accounting records) of the Act.
(1) If, at the end of a year a company has subsidiaries, the directors shall, as well as preparing individual accounts of each subsidiary for that year, also prepare group financial statements being accounts or statements which deal with the state of affairs and profit or loss of the entire company and the subsidiaries.
(2) The provisions of subsection (1) do not apply in instances exempted under accounting standards issued by the Financial Reporting Council of Nigeria.
(3) A group financial statement may not deal with a subsidiary, if thedirectors of the company are of the opinion that—
(a) it is impracticable, or would be of no real value to the members, inview of the insignificant amounts involved ;
(b) it would involve expense or delay out of proportion to its value to members of the company ;
(c) the result would be misleading, or harmful to the business of the company or any of its subsidiaries ; or
(d) the business of the holding company and that of the subsidiary are so different that they cannot reasonably be treated as a single undertaking.
(4) The group financial statements of a company shall consist of a consolidated—(a) balance sheet dealing with the state of affairs of the company and all the subsidiaries of the company ; and
(5) If the directors are of the opinion that it is better for the purpose of presenting the same or equivalent information about the state of affairs and profit or loss of the company and its subsidiaries, and that to so present it maybe readily appreciated by the members of the company, the group financial statements may be prepared in a form not consistent with subsection (1) and in particular the group financial statement may consist of—
(a) more than one set of consolidated financial statements dealing respectively with the company and one group of subsidiaries and with other groups of subsidiaries ;
(b) separate financial statements dealing with each of the subsidiaries ; or
(c) statements expanding the information about the subsidiaries in individual financial statements of the company, or in any other form.
(6) The group financial statements may be wholly or partly incorporated in the individual balance sheet and profit and loss account of the holding company.
