As-21(consolidated financial statements).This statement should be applied in the preparation and presentation of CFS for a group of enterprise under the control of a parent company.
Treatment for minority interest-Minority interest in the net assets of consolidated subsidiaries should be identified and presented in the consolidated balance sheet separately from liabilities and the equity of the parents share holders.
Computation of goodwill:-any excess of the cost to the parent of its investment in a subsidiary over the parents portion of equity of the subsidiary,at the date on which investment is made should be described as goodwill to be recognised as an asset in the CFS.
Treatment of Investment:-The cost to the parent of its investment in each subsidiary and the parents portion of equity of each subsidiary at the date on which investment in each subsidiary is made should be eliminated.
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