Go Ad-Free on CAclubindia with Daily Mobile Updates. Subscribe Now!

Consolidated balance sheet

Pankaj Arora (Learner) (3134 Points)

14 March 2013

Our pvt ltd company X holds 30% stake in Y pvt ltd. I want to know that we have to consolidated financials of Y into X upto 30% stake. Or we can just show 30% stake as investment.

Reply
Follow
Share

4 Replies

Sushil Mishra (Article Assisstant) (21 Points)
Replied 14 March 2013

As it is a case of significant influence, you have to consolidate as per AS-23

Upgrade to CAclubindia Pro. Subscribe Now!

Sneha (Company Secretary) (1594 Points)
Replied 14 March 2013

As per my perception, consolidation of accounts is not required, as these two companies are associate Companies. Companies Bill, 2012 have the provision for its consolidation but it is not passed in Rajya Sabha yet. I think you just need to give disclosures as per AS 18

Sanjeev Parasrampuria (B.Com CA Final CS Final) (273 Points)
Replied 14 March 2013

Originally posted by : Sneha Binani
	As per my perception, consolidation of accounts is not required, as these two companies are associate Companies. Companies Bill, 2012 have the provision for its consolidation but it is not passed in Rajya Sabha yet. I think you just need to give disclosures as per AS 18