Indas Applicability

16 October 2021

Can associate company(listed) make holding(unlisted and less than 250 crore) mandate to apply ind as?????

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3 Replies

yasaswi gomes (My grammar is 💯 good I) (6497 Points)
Replied 16 October 2021

An associate doesn't fall under the holding companies influence technically. Even if it does, the current Indas applicability is between 250-500 crores.

Kev Men (228 Points)
Replied 17 October 2021

Since the associate company is Listed, Ind AS is mandatorily applicable to the associate company from 1st April 2007. If Ind AS is applicable to any company, then it is automatically applicable to its parent, subsidiary, associate and J.V.
In the above case, Ind AS will become applicable to the parent (holding) company as well due to the applicability of its associate company.