"Accounting for Special Purpose Transactions"

HC Deb 02 November 1988 vol 139 c694W

Mr. Heddle

To ask the Chancellor of the Duchy of Lancaster if he is yet able to announce the definition of a subsidiary company in the context of draft 42, "Accounting for Special Purpose Transactions".

Mr. Maude

I announced on 16 August proposals to change the definition of a subsidiary for the purposes of preparing consolidated accounts. The main proposals are (i) to replace the test based on equity share capital with one based on voting rights and (ii) to require consolidation where one company has a certain interest in the shares of another and the first company actually exercises a dominant influence over the other. The changes will be included in legislation to be introduced at a suitable opportunity.