Consolidated financial statements

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This query is : Resolved

Ebin cheeran abraham (Querist)

01 November 2017 Dear sir,

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?

Sandeep Garg

Sandeep Garg (Expert)

01 November 2017 Pls clarify -
1. Consolidation as per IGAAP or IndAS?
2. Do you have any subsidiary or any other JV ?

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Ebin cheeran abraham

Ebin cheeran abraham (Querist)

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

Sandeep Garg

Sandeep Garg (Expert)

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.

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