Consolidated P&L preparation

This query is : Resolved

Abhi Singh (Querist)
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26 February 2020 Company A has two subsidiaries B and C (both 100% SH), It also has a JV with D (50%) and an associate E (49%). Which companies should contribute in A's consolidated P&L??
Eg:
Sales: A (standalone) - 100, B - 20, C - 20, D - 150, E - 100
Sales: A (consolidated) - ??

Kamal Kant Mittal

Kamal Kant Mittal (Expert)
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09 March 2020 Hi,

Under Indian GAAP Regime :
1. You need to consolidate subsidiary on line to line basis with 100% inclusion, For JV - the % of holding held by your co. and for associates - no profit and loss items will be consolidated and consolidation will be done using equity method.
Hence Sales (Consolidated) - Rs. 100+20+20+75=215
Under Ind AS regime:
For subsidiaries, consolidation will be done on line to line basis and for associates and JV, only equity method will be used.
Hence sales (Consolidated) - Rs. 100+20+20= 140
Regards
Kamal Kant

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