What is the purpose of group accounts?

What is a group account?

Group account is a book account whose assets consist of the balances and reservations on the current account of group members and the overdraft of the group.

What is group account in financial accounting?

Group accounts are prepared in accordance with the substance over form concept. While the parent and subsidiary are separate legal entities, group accounts are prepared as if they were a single entity. The preparation of group accounts is a bit like preparing a single set of accounts for my marriage.

What is the purpose of group financial statements?

Rather than a single set of figures that relates to one company within a group, consolidated financial statements show assets, liabilities, equity, income, expenses and cash flows of the parent company and its subsidiaries. Consolidated financial statements are usually prepared by a parent company.

What is a group of accounts for a business?

In accounting, the general ledger is the system that records all activity in all financial accounts for an individual or organization.