In AS 21's scope it has been mentioned that the parent company shall not include the accounts of its subsidiaries while consolidating when
1. Control is intended to be for a short-term & the subsidiary is acquired with a view to its subsequent disposal in the near future. or,
2. It operates under severe long term restrictions , which significantly impair its ability to transfer the funds to the parent.
what is the meaning of point 2? what can be such long term restriction? Please explain with example if possible...
CAclubindia
