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Indian Holding company has a subsidiary in US , does subsidiary in US require any audit in India. If,require what compliances ? and what to take as a financial year and in which currency does it need to prepared.
Replies (6)
Subsidiary does not have any control over Parent. The parent can audit the subsidiary. The audit is done usually in their own presentation currency and translated while consolidating,
Parent auditor or the subsidiary Auditor can audit the US subsidiary and the currency in which the subsidiaries deals should be the currency
Holding Company is liable for Subsidiary. Therefore Audit would apply to Subsidary incase of consolidation.
Consolidated Financial Statement will be prepared in the functional currency of the Company.
Of course, presentation currency and functional can be the same as well in the case of national companies. For a US subsidiary, it’s US dollar separate entity statements. To the Indian parent, it is presented currency and translated to primary functional currency
Yes agree with yasaswi
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