Group financial statements must comply with the provisions of Schedule 3A, taking into account the specific nature of group statements. We should think of all the consolidating entities as a single company.

For the point in Schedule 3A relating to group financial statements:

• Subsidiaries not included in the group statements should be regarded as subsidiaries of the group.
• If the holding company is itself a subsidiary, the group is viewed as a subsidiary of any holding company of that holding company.

Full details from the individual balance sheets and profit / loss accounts of the holding company and subsidiary companies must be consolidated into the overall group balance sheet and profit / loss account. Required adjustments should be made as per this Schedule, other adjustments may also be necessary according to accepted accounting practices.

If a subsidiary's financial year differs from the holding company, the group statements should be based on:

• Either, the subsidiary's financial statements for its last financial year if it ended not more than 3 months before the end of the holding company's financial year, with due account taken for substantial events that occurred between the two financial year-end dates.
• Or, interim financial statements of the subsidiary made at the end of the holding company's financial year.

When applying Balance Sheet Formats 1 and 2 of Part II of Schedule 3A to group statements, an item labelled "Non-controlling Interests" should be featured:

• In Format 1 after item H.
• In Format 2 under the heading "Capital, reserves, and liabilities", between items A and B.

This "Non-controlling Interests" entry should show the value of share capital and reserves attributable to shares in subsidiary companies in the consolidated group statements that are held by or on behalf of parties other than the holding company and its subsidiaries.

When applying Profit and Loss Account Formats 1 and 2 of Part II of Schedule 3A to group statements, profit or loss for the year should be distributed between amounts for "Non-controlling Interests" and equity holders of the holding company:

• In Format 1, represented by item 16
• In Format 2, represented by item 18

'Non-controlling Interests' should reflect any profit or loss for the year that is attributed to shares in the consolidated subsidiary companies held by others than the holding company and its subsidiaries.

The formats in Part II of Schedule 3A undergo the following modifications when applied to group statements:

• "Participating interests" in the Balance Sheet Formats should be changed to "Interests in associated undertakings" and "Other participating interests".
• "Income from participating interests" in Profit and Loss Account Formats should be changed to "Income from interests in associated undertakings" and "Income from other participating interests".