Consolidation

This discussion delves into the complexities of consolidating with an indirect associate. It questions whether a parent company (Y) can consolidate the profits of a company (Z) in which its wholly-owned subsidiary (X) holds a significant investment (over 20%). The consensus points towards valuing the associate (Z) using the equity method as per Ind AS 28, implying that the parent (Y) would not typically prepare a separate consolidated financial statement for Z, and the subsidiary (X) would not need to prepare separate consolidation statements for Z.