Consolidation requirement / consolidated financial statements

In the Netherlands the parent company of a group of companies is required by law to draw up consolidated financial statements. These statements include all the assets The assets of a Dutch company reflect the value of all that the company possesses
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and liabilities, income and expenditures of the legal entities and companies that are part of the group.

If the parent company includes the financial information of its subsidiaries in consolidated financial statements, the subsidiary company is not required to draw up separate financial statements. It is necessary, however, that the parent company declares that it will be jointly and severally liable for the debts of the exempted legal person.

This exemption is laid down in article 403 of book 2 of the Dutch Civil Code. Therefore this exemption is also referred to as the “403-verklaring” (403-statement).


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