Under what condition can a company be exempt from preparing group accounts?

A company can be exempt from preparing group accounts if it is a wholly-owned subsidiary. This is because, in such cases, the parent company prepares consolidated financial statements that include the financials of all its subsidiaries. Consequently, the wholly-owned subsidiary does not need to prepare its own group accounts, as the required information will be reflected in the parent company's consolidated statements.

This aligns with reporting standards that aim to simplify accounting requirements for entities that are fully owned subsidiaries, thus avoiding redundancy in financial reporting. The focus here is on the practical aspect of financial reporting, where combined reporting by the parent company suffices for both the parent and the subsidiary, thereby reducing administrative burdens.

In contrast, other options involve scenarios where group accounts would typically still be necessary. For instance, a company without subsidiary companies does not need to prepare group accounts, but it would be more focused on standalone financials. Similarly, operating in multiple countries or having publicly traded debt instruments does not in itself provide an exemption from group accounting requirements and might actually impose additional obligations for financial disclosure.