Associated Companies

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This discussion clarifies that having the same registered office and conducting business with each other does not automatically classify companies as 'associate companies' based on management control. Consequently, there is no requirement to prepare consolidated financial statements in such scenarios. The query also touches upon reporting financials with different auditors and other related disclosures, though the primary answer focuses on the definition of associate companies.

RAKESH KUMAR

RAKESH KUMAR (Querist)
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15 June 2021 If two companies have same registered office and are engaged in business with each other, will they be considered as associate companies, by virtue of the management control.

If yes, are the associated companies required to prepare consolidated financials. How to report the financials, if the associate companies have different auditors.

What are other disclosures to be made, in this regard.

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