Section 643 of The Companies Act No. 17 of 2015: Requirements for group financial statements
(1) In preparing a group individual financial statement for a financial year, the directors of the parent company concerned shall ensure that the statement complies with the requirements of this section.
(2) The requirements are that—
(a) the statement comprises—
(i) a consolidated balance sheet dealing with the financial position of the parent company and its subsidiary undertakings; and
(ii) a consolidated profit and loss account dealing with the profit or loss of the parent company and its subsidiary undertakings;
(b) the statement provides a true and fair view of the financial position as at the end of the financial year, and the profit or loss for the financial year, of the undertakings comprising the consolidation as a whole, so far as concerns members of the company;
(c) the statement complies with the prescribed financial accounting standards relating to—
(i) the form and content of the consolidated balance sheet and consolidated profit and loss account; and
(ii) additional information to be provided as notes to the statement.
(3) If compliance with—
(a) the prescribed financial accounting standards; and
(b) any other provisions made by or under this Act relating to the matters to be included in a company's group financial statement or in notes to the statement, would not be sufficient to provide a true and fair view, the directors shall provide the necessary additional information in the statement or in a note to it.
(4) If, in special circumstances, compliance with any of the provisions referred to in subsection (3)(b) is inconsistent with the requirement to provide a true and fair view, the directors shall depart from those provisions to the extent necessary to provide a true and fair view.
(5) The directors shall provide particulars of any such departure, the reasons for it and its effect in a note to the statement.
(6) If the directors of the parent company fail to comply with a requirement of this section, each director of the company who is in default commits an offence and on conviction is liable to a fine not exceeding five hundred thousand shillings.
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