FRS 2 has been superseded by FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland for accounting periods beginning on or after 1 January 2015. For more information visit:

• icaew.com/newukgaap

Synopsis

The purpose of consolidated financial statements is to provide financial information about the economic activities of a group. FRS 2 sets out:

• the conditions under which a parent undertaking should prepare consolidated financial statements 
• the manner in which consolidated financial statements should be prepared, and
• the very limited situations where a subsidiary may be excluded from consolidation.

• Read FRC Summary on FRS 2

Last updated 21 June 2015