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Financial results for an individual legal company, rather than the combined operations of that company and its .
Save conceptStandalone financial results describe an individual company’s account. A parent company can publish these alongside for the wider group. The individual company can own investments in without those statements simply adding each ’s full sales and expenses. Knowing which account is being discussed is essential when comparing , profit or .
The individual company records its own recognised assets, income, expenses and investments under the applicable accounting rules. Separate financial statements have rules for how investments in and other entities are measured. reporting uses a different perspective: the parent and its controlled are presented as a group. The resulting and profit totals can therefore differ.
Imagine a hypothetical parent operates shops and also owns an online . The parent’s standalone sales relate to its own operations; the has its own sales and expenses. combine the controlled businesses with the required accounting adjustments. Reporting the parent’s growth rate next to a group profit total would mix scopes, even if both numbers came from the same release.
Standalone does not mean unaudited, independent or free of investments. It identifies the reporting entity. The precise accounting treatment depends on the relevant standards and company disclosures. In a news account, compare standalone with standalone for matching periods, and with . A difference between the two profit totals alone does not fully explain the results of a particular .
DMart sales rise faster than profit as quarterly margins narrow