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) - ??
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
CAclubindia
