Firms Changing Filing Method

The Securities & Futures Commission will require 14 business groups to file consolidated financial statements for the 2001 business year. The statements will include a total of 642 affiliate companies.

The total number of groups and affiliates under the order, including Samsung Electronics Co. and Hyundai Merchant Marine Co., is down from last year's 19 business groups and 746 units.

In contrast with combined financial statements, which sum the statements of a conglomerate and its affiliates, consolidated statements treat the affiliates as if they were investments of the group. They also include more companies over which the group exercises some kind of control. Regulators use consolidated statements to spot transactions between affiliates.

Samsung Group had the largest number of firms required to be included in the statement, 183. LG followed with 139.