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Regarding IndAS Applicability

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Ashwani Narnoli

1843 Points Posted on 11 August 2023

Hi, I need to know the applicability of Indas on Company F. Details are as given below:

Company M (NBFC Company having networth of Rs 50 Crores) is subsidiary of Company P (Listed Company). Company M has an wholly owned Subsidiary named Company F. Whether Company F is required to prepare Financials as per IndAS or AS.

Please note that Company M is required to follow AS and Company P is required to follow IndAS.

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Quick Summary

This discussion seeks to clarify the applicability of Indian Accounting Standards (IndAS) for Company F, a wholly-owned subsidiary of Company M. Company M is an NBFC with a net worth of Rs 50 Crores and follows Accounting Standards (AS), while its parent, Company P, is a listed company that adheres to IndAS. The core question is whether Company F should prepare its financial statements under IndAS or AS, considering the differing accounting standards followed by its immediate parent and ultimate parent.