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.
