01 April 2021
Hi all, I have doubt on IndAS. On 15.03.2021 listed co acquired privte company. Here my doubt is, 1.Whether subsidiary of listed companies are required to file quarterly/ year to date financials. 2. If yes, is it required to be prepared for quarter ended march 2021. 3. What is the due date for filing quartely/ year to date returns? 4. Is Peer review of auditors mandatory for auditors of subsidiary of listed companies ??
09 July 2024
Regarding your doubts related to IndAS and subsidiary requirements for a listed company, here are the clarifications:
1. **Filing of Quarterly/Year-to-Date Financials:** - Subsidiaries of listed companies are typically required to prepare and file quarterly financial statements (not year-to-date) with their parent company. These financial statements are usually consolidated into the listed company's overall financial reporting. - The requirement to file quarterly financials is primarily to provide transparency and update the shareholders and stakeholders about the subsidiary's financial performance on a regular basis.
2. **Quarter Ended March 2021:** - Yes, if the acquisition of the private company occurred on 15.03.2021, the subsidiary would need to prepare financial statements for the quarter ended March 2021. This ensures that the financial performance of the subsidiary from the acquisition date until the end of the quarter is captured.
3. **Due Date for Filing Quarterly Financials:** - The specific due date for filing quarterly financial statements can vary depending on regulatory requirements and the listed company's internal reporting deadlines. Typically, subsidiaries need to submit their financials within a specified time frame after the end of each quarter, which is often around 45 to 60 days after the quarter-end.
4. **Peer Review of Auditors:** - The requirement for a peer review of auditors of subsidiaries of listed companies depends on local regulatory requirements and the specific policies of the listed company. In many jurisdictions, listed companies or their subsidiaries may have policies or requirements that mandate a peer review of the audit firm performing the audit. - It's important to check with the local regulations and the listed company's corporate governance policies to determine if peer review of auditors is mandatory for the subsidiary.
### Summary: - Subsidiaries of listed companies typically need to file quarterly financial statements (not year-to-date) with their parent company. - Financial statements for the quarter ended March 2021 should be prepared and submitted. - The due date for filing quarterly financials varies but is generally within 45 to 60 days after the end of the quarter. - The requirement for peer review of auditors of subsidiaries depends on local regulations and corporate governance policies.
For precise guidance tailored to your jurisdiction and specific situation, consulting with a local accountant or financial advisor familiar with IndAS and local regulatory requirements would be advisable.
CAclubindia
