Chapter III: Subsidiaries, holdings and controlled companies

Provided they justify this in the schedule provided for in Article L. 123-12, the companies mentioned in I of article L. 233-16 are exempt from the obligation to draw up and publish consolidated accounts and a report on the management of the group when all the undertakings which they control exclusively or jointly, within the meaning of the same article L. 233-16, are, both individually and collectively, of negligible interest…

Subsidiaries or holdings that are exclusively or jointly controlled or over which significant influence is exercised are included in the consolidation. Significant influence over the management and financial policy of an undertaking is presumed when a company holds, directly or indirectly, at least one-fifth of the voting rights of that undertaking.

The accounts of companies under the exclusive control of the consolidating company are fully consolidated. The accounts of companies controlled jointly with other shareholders or associates by the consolidating company are proportionately consolidated. The accounts of companies over which the consolidating company exercises significant influence are consolidated using the equity method.

I.-Subject to justification in the notes drawn up by the consolidating company, a subsidiary or holding is left outside the consolidation when severe and lasting restrictions substantially call into question the control or influence exercised by the consolidating company over the subsidiary or holding or the possibilities of transferring funds by the subsidiary or holding. II.-Subject to the same proviso, a subsidiary or participating interest may be left outside the…

The consolidated financial statements comprise the consolidated balance sheet and income statement and notes to the financial statements: they form an indivisible whole. To this end, the companies included in the consolidation are required to send the consolidating company the information necessary for the preparation of the consolidated financial statements. The consolidated financial statements are prepared and published in accordance with the procedures laid down by a regulation of the…

The consolidated financial statements must be true and fair and give a true and fair view of the assets and liabilities, financial position and results of the consolidated group. The provisions of the first and second paragraphs of article L. 123-14.

Subject to the provisions of article L. 233-23, the consolidated financial statements are prepared in accordance with the accounting principles and valuation rules of this code, taking into account the essential adjustments resulting from the specific characteristics of the consolidated financial statements compared with the annual financial statements and the presentation of the consolidated whole as a single economic entity. Assets, liabilities, income and expenses included in the consolidated financial…

Subject to justification in the notes to the financial statements, the consolidating company may use, under the conditions provided for in Article L. 123-17, valuation rules set by regulation of the Autorité des normes comptables, and intended: 1° To value fungible assets on the basis that the first asset out is the last asset in; 2° To allow the inclusion of rules that do not comply with those set by…

When using the international accounting standards adopted by regulation of the European Commission, commercial companies which draw up and publish consolidated accounts within the meaning of Article L. 233-16 are exempted from complying with the accounting rules laid down by Articles L. 233-17-2 to L. 233-23 and L. 233-25 for the preparation and publication of their consolidated financial statements.

Subject to justification in the notes to the financial statements, the consolidated financial statements may be drawn up on a different date from that of the annual financial statements of the consolidating company if that date is used by the majority of the undertakings included in the consolidation for their parent company financial statements. In this case, significant events affecting the assets or liabilities of the undertakings included in the…