AS 21 - 408 Accounting Standard(AS 21(issued 2001...

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408 Accounting Standard (AS) 21 (issued 2001) Consolidated Financial Statements Contents OBJECTIVE SCOPE Paragraphs 1-4 DEFINITIONS 5-6 PRESENTATION OF CONSOLIDATED FINANCIAL STATEMENTS 7-8 SCOPE OF CONSOLIDATED FINANCIAL STATEMENTS 9-12 CONSOLIDATION PROCEDURES 13-27 ACCOUNTING FOR INVESTMENTS IN SUBSIDIARIES IN A P ARENT’ S SEPARATE FINANCIAL STATEMENTS 28 DISCLOSURE 29 TRANSITIONAL PROVISIONS 30 The following Accounting Standards Interpretations (ASIs) relate to AS 21: ASI 8 - Interpretation of the term ‘Nea r Future ASI 15 - Notes to the Consolidated Financial Statements ASI 24 - Definition of ‘Contro l ASI 25 - Exclusion of a subsidiary from consolidation ASI 26 - Accounting for taxes on income in the consolidated financial statements ASI 28 - Disclosure of parent ’s/venture r s shares in post-acquisition reserves of a subsidiary/jointly controlled entity The above Interpretations are published elsewhere in this Compendium.
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Accounting Standard (AS) 21 (issued 2001) Consolidated Financial Statements (This Accounting Standard includes paragraphs set in bold italic type and plain type, which have equal authority. Paragraphs in bold italic type indicate the main principles. This Accounting Standard should be read in the context of its objective and the Preface to the Statements of Accounting Standards 1 .) Accounting Standard (AS) 21, ‘Consolidate d Financial Statements’ , issued by the Council of the Institute of Chartered Accountants of India, comes into effect in respect of accounting periods commencing on or after 1-4-2001. An enterprise that presents consolidated financial statements should prepare and present these statements in accordance with this Standard. 2 The following is the text of the Accounting Standard. Objective The objective of this Statement is to lay down principles and procedures for preparation and presentation of consolidated financial statements. Consolidated financial statements are presented by a parent (also known as holding enterprise) to provide financial information about the economic activities of its group. These statements are intended to present financial information about a parent and its subsidiary(ies) as a single economic entity to show the economic resources controlled by the group, the obligations of the group and results the group achieves with its resources. 1 Attention is specifically drawn to paragraph 4.3 of the Preface, according to which Accounting Standards are intended to apply only to items which are material. 2 It is clarified that AS 21 is mandatory if an enterprise presents consolidated financial statements. In other words, the accounting standard does not mandate an enterprise to present consolidated financial statements but, if the enterprise presents consolidated financial statements for complying with the requirements of any statute or otherwise, it should prepare and present consolidated financial statements in accordance with AS 21 (see ‘The Chartered Accountant’,
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This note was uploaded on 12/07/2011 for the course MBA 0001 taught by Professor Akshat during the Spring '09 term at Institute of Management Technology.

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AS 21 - 408 Accounting Standard(AS 21(issued 2001...

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