Combine Parent & Translated Subsidiary SFSs Line-by-Line, Even If It Leads to Different Carrying Amounts in CFS for Similar Assets
- Blog|News|Account & Audit|
- < 1 minute
- By Taxmann
- |
- Last Updated on 29 February, 2024
Latest from Taxmann
Para B87 of Ind AS 110 states that if a member of the group uses accounting policies other than those adopted in the consolidated financial statements for like transactions and events in similar circumstances, appropriate adjustments are made to that group member’s financial statements in preparing the consolidated financial statements to ensure conformity with the group’s accounting policies.
In case where parent company is operating in India having INR as functional currency and subsidiary company operating in foreign currency and incorporating in India having functional currency in US Dollar. Both companies acquired the identical leasehold land and capitalised the same to fixed asset. Due to conversion of functional currency to presentation currency i.e. USD to INR has given rise to translation gain in the value of the asset over a period of year. While consolidating the financial statement items line by line, auditor observed that same identical ROU leasehold land are taken on different values and believes that a parent shall prepare consolidated financial statements using uniform accounting policies for like transactions and other events in similar circumstances.
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
