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Complex groups
Vertical groups
1.1 Background
A vertical group consists of an indirectly controlled subsidiary (often called a sub-
subsidiary).
Look at the following group structure: does company A control company C?
Company A
70%
Company B
60%
Company C
Company A controls Company B, and Company B controls Company C. Company A
therefore controls Company C through its holding in Company B. All three companies
form a vertical group.
The basic techniques of consolidation are the same as seen previously, with some
changes to the goodwill, NCI and group reserves calculations.
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