AS- 21 on Conslidation says that maximum difference in the closing finalization dates of holding and subsidiary is 6 months. What if the dates extend beyond the prescribed rule? For e.g., the financial year ending for the holding co. is March 31 and that of subsidiary is June 30.
Please reply asap.
law doen not specifically state the consequences but it seems that the intent of legislator was to not allow company more than 6 months gap in between closing date of holding and subsidiary.
In case gap between closing date of subsidiary is more than 6 months it has to prepare a seperate FS at the end of 6 months stating their financial performance and financial assets held by them
Hi Pankaj,
Consolidation does require all subsidiaries (domestic or foreign) to be consolidated.
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