Is a small company who has share holding of more than 20% in another private company (therefore Associate) required to prepare Consolidated Financial Statements and file AOC-4CFS for FY 2020-21?
Every Company having an associate Company is required to consolidate the accounts of such associate companies with its own accounts as per the Companies Act, 2013 and the Indian Accounting Standards provided therein.
Investments in associates accounted for using the equity method should be classified as long-term investments and disclosed separately in the consolidated balance sheet. The investor's share of the profits or losses of such investments should be disclosed separately in the consolidated statement of profit and loss.
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