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Consolidation - only associates and no subsidiary

05 May 2018

A private Ltd company is having only associates and not subsidiary. IND AS is not applicable to the company. Whether consolidated financial statements is to be prepared or not?

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8 Replies

Divakar (Student CA Final ) (11857 Points)
Replied 05 May 2018

Yes prepared... As per company act

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satish (teaching) (2046 Points)
Replied 05 May 2018

yes as per Accounting Standard 23

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Divakar (Student CA Final ) (11857 Points)
Replied 05 May 2018

As 23 doesn't mandate that..... As 21,23,27 only told that if consolidation is there then it as per this standard.... It mandate in company act 2013 section 128

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Harini Rajagopalan (7 Points)
Replied 05 May 2018

But has it been notified?

Divakar (Student CA Final ) (11857 Points)
Replied 05 May 2018

Yes notified much earlier.... Whether u hv subsidiary or not.... Consolidation is must in case of associate and joint venture also

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Harini Rajagopalan (7 Points)
Replied 05 May 2018

Thank you

Divakar (Student CA Final ) (11857 Points)
Replied 05 May 2018

Plz refer section 129(1)(d)....consolidation is mandatory there.... And subsidiary include associates and joint venture also

P C Agrawal (Registered independent director Past Chairman of Aurangabad Chapter of ICSI Practicing Company Secretary at Aurangabad) (8229 Points)
Replied 07 May 2018

Yes, it is mandatory u/s 129(3). Sec.129(3) has been changed vide Companies (Amendment) Act 2017 and the amended provision is yet to come into force. However, even under existing provision it is mandatory to prepare consolidated financials.

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