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The principal accounting policies applied in the preparation of these Consolidated Financial Statements are set out below.

In short, the new standard requires that these types of entities be consolidated into the financial statements of the entity that benefits the most from their operating income and who holds the risk to absorb any operating losses and liabilities (i.e. It sounds easy enough, but as practitioners can attest, the standards are extensive and a bit confusing, which continues to result in ‘diversity in practice'.

Each subsequent financial year must: The directors may make the financial year shorter or longer than 12 months by no more than seven days, to accommodate entities with week-based internal reporting (section 323D(2)).

You do not need our permission to make this change, but you do need to notify us.

This power is only available if the accounting standards require the preparation of consolidated financial statements.

It is to be used only once, in the 12 months after the need to consolidate arises; it is not otherwise available.