we have a joint venture in SriLanka (40%)so we are required to prepare consolidated financial statements in 15-16 F.Y .I have following doubts in preparation of financial statements please clarify these.
a)whether it is required to restate depreciation,gratuity and deferred tax based on rate and policy of parent company b)is it mandatory to follow proportionate consolidation method?
01 November 2017
1)consolidation as per section 129(3)of companies act 2013 {for the purposes of this sub-section ,the word "subsidiary "shall includes associate company and joint venture} 2) NO
01 November 2017
Yes...consolidation is mandatory. Under IGAAP, proportionate consolidation to be done and under IndAS only equity accounting is required.. Further, only policies should be same across not accounting estimates. Depreciation is an estimate.
CAclubindia
