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Complex groups

D-shaped groups

2.1 Background

A D-shaped group (sometimes called a ‘mixed group’) consists of a directly controlled
subsidiary and another subsidiary in which the parent has both a direct and an
indirect interest.

Look at the following group structure: does company A control company C?

Company A

60%

Company B 30%

30%

Company C

Company A controls Company B.

Company A has a 30% holding in Company C and it also controls Company B’s 30%
holding in Company C. Company A therefore controls Company C through direct and
indirect holdings.

Accounting for a D-shaped group is very similar to accounting for a vertical group.

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