Company A is a wholly-owned unlisted subsidiary of Company X (a listed Indian company that prepares Ind AS consolidated financial statements).…

CA Final · Financial Reporting · MTP · November 2026
Company A is a wholly-owned unlisted subsidiary of Company X (a listed Indian company that prepares Ind AS consolidated financial statements). Company A has subsidiaries of its own. Can Company A avail the exemption from preparing consolidated financial statements under Ind AS 110?
(A) No, only listed entities are exempt from preparing CFS
(B) Yes, it satisfies all conditions: unlisted, not filing for listing, parent prepares Ind AS CFS available publicly, and the owner does not object
(C) No, a subsidiary with its own subsidiaries must always prepare CFS
(D) Yes, but only if Company A's subsidiaries are also wholly owned

Suggested Answer and Working Notes:

Correct Answer: Option (B)

Basis: Ind AS 110 Appendix B (Paragraph 4). An entity is exempt from preparing consolidated financial statements if it is a wholly-owned subsidiary, its debt/equity instruments are not traded in a public market, it is not in the process of filing for listing, and its parent produces publicly available Ind AS CFS.

Topics: Ind AS 110

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