Company A is the parent company of a group. Company A is an unlisted company having net worth of 60 crores as on 31st March 20X1. Following are the…
CA Final · Financial Reporting · MTP · September 2025
Company A is the parent company of a group. Company A is an unlisted company having net worth of 60 crores as on 31st March 20X1. Following are the other companies of the group. Name of the company Relationship Net worth as on 31st March 20X1 Company B (Unlisted) Subsidiary of Company A 600 Crore Company C (Unlisted) Subsidiary of Company B 150 Crore Whether Ind AS be applicable to companies A, B and C?
Suggested Answer and Working Notes:
Company A and C are unlisted and do not exceed the net worth criteria. However, the net worth of Company B exceeds 500crore hence it would be covered as per the roadmap for implementation of Ind AS in the preparation of its Financial Statements. As Ind AS be applicable to Company B, the parent company of Company B i.e. Company A and subsidiary of Company B i.e. Company C would also get covered under Ind AS irrespective of net worth criteria. Hence Ind AS would be applicable to all three companies i.e. Company A, B and C.
Topics: Ind AS 110
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