How to consolidate the financial statement of associate when the reporting period of the investor and the associate is different.
I am aware of the following para mentioned in AS - 23.
"When the reporting dates of the investor and the associate are different, the associate often prepares, for the use of the investor, statements as at the same date as the financial statements of the investor. When it is impracticable to do this,financial statements drawn up to a different reporting date may be used.
The consistency principle requires that the length of the reporting periods,and any difference in the reporting dates, are consistent from period to period.
When financial statements with a different reporting date are used, adjustments are made for the effects of any significant events or transactions between the investor (or its consolidated subsidiaries) and the associate that occur between the date of the associateâ€™s financial statements and the date of the investorâ€™s consolidated financial statements."
So, in all such cases, the associate draws financial statement as of the same date of investor ? and if not what kind of adjustments are made by the investor if it uses financial statement of different period of the associate.
Is there any other method ?
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