The status of a subsidiary company is determined by reference to
a period of account, and a subsidiary company will be a dependent
subsidiary company unless each of the four conditions in
FA88/S86 (1) is satisfied for the period of account.
The first two conditions ( ERSM61030) concern the conduct of the company's business during the period of account. The third and fourth conditions ( ERSM61040) concern the company's requirement to give a certificate after the end of the period of account.
If any of the conditions is not satisfied the company is a dependent subsidiary for the period of account.