Consolidation as per Indas

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Finance
4592 Points Posted on 13 October 2023

  1. Intragroup sales of non-current assets led to DTA in parents books. Subsidiary also has DTA from other transactions but not from group's.

  2. Intragroup loan went bad and subsidiary didn't pay parent loan and failed SPPI test and Parent created a provision. Subsidiary also has provisions outstanding from third parties.

  3. Parent has DTL, Subsidiary has DTL due to their differences between accounting policies, SLM and WDV.

So when I consolidate the above scenarios, will it be P+S-Intragroup because all assets and liabilities arose due to intragroup transactions.

I have a solution for this but I want conformity.

 

txs

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On 13 October 2023 at 19:11 Report
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Quick Summary
This discussion delves into the intricacies of consolidating group financial statements, specifically focusing on intragroup transactions. It addresses how to handle deferred tax assets (DTAs) and liabilities (DTLs) arising from intercompany sales and differing accounting policies. The conversation also touches upon the accounting treatment for bad intragroup loans and provisions, aiming for a clear understanding of the P+S-Intragroup consolidation principle and its practical implications.

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Profession
28271 Points Posted on 14 October 2023
Pls post actually trial balance
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On 14 October 2023 at 10:06
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Finance
4592 Points Posted on 14 October 2023

Ok I'm not working excel right now but I'll post it later on. I'm on my holidays. 

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On 14 October 2023 at 19:42
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Finance
4592 Points Posted on 14 October 2023

But how will you consolidate based on trial balance only and not from actual statements. Everyone knows the P+S-INTRAGROUP. But no one wrote about consequences and it's treatment from intragroup transaction. I know it all better than anyone. Believe me many CA hardly knows anything about Net identifiable assets 

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On 14 October 2023 at 20:12

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