disproportionate expense and undue delay

Show Summary Details

Quick Reference

A reason for excluding an individual subsidiary undertaking from the consolidated financial statements of a group. It concerns a situation in which there would be a relatively high cost and an excessive time lag in obtaining the information necessary for the preparation of the consolidated accounts. Financial Reporting Standard 2, Accounting for Subsidiary Undertakings, seeks to narrow this exclusion by stating that disproportionate expense and undue delay cannot justify the exclusion from consolidation of subsidiary undertakings that are individually or collectively material in the context of the group. See also exclusion of subsidiaries from consolidation.

Subjects: Accounting.

Reference entries

Users without a subscription are not able to see the full content. Please, subscribe or login to access all content.