Page 2 - 17. COMPILER QB - INDAS 110

INDAS 110

CONSOLIDATED FINANCIAL STATEMENTS

(TOTAL NO. OF QUESTIONS – 4)

Index

S.No. Particulars Page No.
1 RTP Questions 17.1

2 MTP Questions 17.5

RTPs QUESTIONS

Q1. (May 20) (Also newly added in ICAI Module)

Gamma Limited, a parent company, is engaged in manufacturing and retail activities. The group holds
investments in different entities as follows:

● Gamma Limited holds 100% Investment in G Limited and D Limited;
● G Limited and D Limited hold 60% and 40% in GD Limited respectively;
● Delta Limited is a 100% subsidiary of GD Limited
Firstly, Gamma Limited wants you to suggest whether GD Limited can avail the exemption from the
preparation and presentation of consolidated financial statements as per applicable Ind AS?
Secondly, if all other facts remain the same as above except that G Limited and D Limited are both owned by

an Individual (say, Mr. X) instead of Gamma Limited, then explain whether GD Limited can avail the
exemption from the preparation and presentation of consolidated financial statements.
SOLUTION

As per Ind AS 110, an entity that is a parent shall present consolidated financial statements. This Ind AS
applies to all entities, except as follows:
A parent need not present consolidated financial statements if it meets all the following conditions:
(i) it is a wholly-owned subsidiary or is a partially-owned subsidiary of another entity and all its other

owners, including those not otherwise entitled to vote, have been informed about, and do not object to,
the parent not presenting consolidated financial statements;
(ii) its debt or equity instruments are not traded in a public market (a domestic or foreign stock exchange
or an over-the-counter market, including local and regional markets);
(iii) it did not file, nor is it in the process of filing, its financial statements with a securities commission

or other regulatory organization for the purpose of issuing any class of instruments in a public market;

17.1