Applicability of AS - 21

Hello,

AS 21 s applicable to Level 1 enterprise if enterprise it wishes to prepare consolidated accounts. Level 1 enterprise includes) Enterprises whose equity or debt securities are listed whether in India or outside India.

ii) Enterprises, which are in the process of listing their equity or debt securities as evidenced by the board of directors’ resolution in this regard.

iii) Banks including co-operative banks.

iv) Financial Institutions

v) Enterprises carrying on insurance business.

vi) All commercial, industrial and business reporting enterprises, whose turnover for the immediately preceding accounting period on the basis of audited financial statements exceeds Rs. 500 million. Turnover does not include ‘other income’.

vii) All commercial, industrial and business reporting enterprises having borrowings, including public deposits, in excess of Rs. 100 million at any time during the accounting period.

viii) Holding and subsidiary enterprises of any one of the above at any time during the accounting period.
 

Even if such company prefers not to prepare consolidated accounts, AS 21 is not applicable.

Mr. Krutsesh,

Does it mean, their logic not to consolidate is correct?? 

yes thr logic is correct...as it is not a listed company thus not governed by listing agreement..

As per listing agreement very listed company has to prepare CFS if any subsidiary is thr. and that to in line with AS 21.