AS 24 Discontinuing operations

Originally posted by : gokul
	A ltd has two subsidiaries B ltd and C ltd. If C ltd is to be closed off, whether disclosures as per AS 24 Discontinuing operations is applicable in respect of the Consolidated Fianancial Statements of A ltd. Thanks

 Hi,

are these subsidiaries engaged in the same activities as those of parent company.

hi mr. gokul ,

suppose if there is a sale off because of certain circumstances which are of material nature , which have a effect on going conern itself , then a disclousr is important in notes to account as per as-24

ur question is not specific..

still suppose the subsidaries are also engaged in same business line which holding co. is , still selling a subsidiary doesnt neccesarily satisy the definition and condition given in AS-24. But it might be discontinuing operation as per as-24 in combination with other circumstances in particular facts n circumstances

The activities of the parent and the subsidiary which is to be sold off is completely different. There will only be A ltd (holding co) and its other subsidiary B Ltd. I also appreciate that it is not appropriate to assume the going concern concept as far as C ltd is concerned.

However Iam not clear whether the disclosure as per AS 24 is applicable say

1. only when one of the units / operations of A ltd is to be discontinued - therefore the same is disclosed in the stand alone financial statements of A ltd or

2. when a subsidiary's business (unrelated with the business of holding co) is dispossed or discontinued - whether disclosure as per AS 24 is required in the consolidated financial statements of the holding co (not the stand alone financial statement of A ltd).

Thanks