The rules and accounting principles from Part III of Schedule 3 are used to determine the figures in the group financial statements. These principles and rules need to be applied consistently within the group financial statements.

A holding company needs to use the same valuation methods in both its group and entity financial statements. However, if these statements use different accounting standards, the applicable standards should be disclosed in the notes, along with the reasons for this difference.

If the directors believe a departure from using the same valuation methods is necessary for providing a true and fair view, this departure is allowed. If this decision is made, the details of why the departure was needed should be included in the group financial statements.

If firms within the group use differing accounting rules when valuing assets and liabilities, these values need to be adjusted to align with the rules used for the group financial statements. But, if these adjustments don't significantly impact the fair view, they can be skipped. If directors choose to not make these adjustments for special reasons, they should include the reasons and details in the notes to the group financial statements.

When preparing group financial statements, the profits, losses and financial position should be shown as if the holding company and undertakings were a single entity. Similarly, debts, claims, income and expenditure resulting from transactions within the group should be eliminated. But, if the values aren't significant, they can be overlooked.

Generally, the same consolidation methods should be used from one year to the next. But, again, if the directors believe there are special reasons for not following this, they may do so but must explain their reasons in the notes to the group financial statements.