[Checklist] for Disclosure Obligation under AS 23 | Accounting for Investments
- Blog|News|Account & Audit|
- 2 Min Read
- By Taxmann
- |
- Last Updated on 3 May, 2023
Latest from Taxmann
The objective of AS 23, Accounting for Investments in Associates in Consolidated Financial Statements, is to set out principles and procedures for recognising, in the consolidated financial statements, the effects of the investments in associates on the financial position and operating results of a group. An associate is an enterprise in which the investor has significant influence and which is neither a subsidiary nor a joint venture of the investor. Significant influence is the power to participate in the financial and/ or operating policy decisions of the investee but not control over those policies. For the purpose of this Standard significant influence does not extend to the power to govern the financial and/or operating policies of an enterprise. As per the stipulation of this standard, an entity must comply with the below-mentioned disclosure requirements:
I. Has the entity disclosed the reasons for not applying the equity method in accounting for investments in associates when an investment in an associate has not been accounted for in consolidated financial statements under the equity method where permitted under AS 23?
II. Has the disclosure under the consolidated financial statements included a suitable list and explanation of associates, along with the percentage of ownership interest and, if applicable, the percentage of voting power held?
III. Have the consolidated financial statements disclosed the name(s) of the associate(s) whose reporting date(s) differ from that of the investor’s financial statements, along with the differences in reporting dates?
IV. If associates use accounting policies different from those adopted for similar transactions and events in similar circumstances in the consolidated financial statements, and it is impractical to make appropriate adjustments to their financial statements, has this fact been disclosed along with a brief description of the differences in accounting policies?
Click Here To Read The Full Story
Disclaimer: The content/information published on the website is only for general information of the user and shall not be construed as legal advice. While the Taxmann has exercised reasonable efforts to ensure the veracity of information/content published, Taxmann shall be under no liability in any manner whatsoever for incorrect information, if any.
Taxmann Publications has a dedicated in-house Research & Editorial Team. This team consists of a team of Chartered Accountants, Company Secretaries, and Lawyers. This team works under the guidance and supervision of editor-in-chief Mr Rakesh Bhargava.
The Research and Editorial Team is responsible for developing reliable and accurate content for the readers. The team follows the six-sigma approach to achieve the benchmark of zero error in its publications and research platforms. The team ensures that the following publication guidelines are thoroughly followed while developing the content:
- The statutory material is obtained only from the authorized and reliable sources
- All the latest developments in the judicial and legislative fields are covered
- Prepare the analytical write-ups on current, controversial, and important issues to help the readers to understand the concept and its implications
- Every content published by Taxmann is complete, accurate and lucid
- All evidence-based statements are supported with proper reference to Section, Circular No., Notification No. or citations
- The golden rules of grammar, style and consistency are thoroughly followed
- Font and size that’s easy to read and remain consistent across all imprint and digital publications are applied
Sign Up
To subscribe to our weekly newsletter please log in/register on Taxmann.com
Latest Books
Everything on Tax and Corporate Laws of India
To subscribe to our weekly newsletter please log in/register on Taxmann.com
CA | CS | CMA
