Page 268 - CA Final PARAM Digital Book.

consolidated financial statements unless these components meet criterion for exclusion.

In the given case, Excellent Ltd has provided the list of components included in the consolidated
financial statements (CFSs). CA Vimal shall verify that all the components have been included in the
CFSs.

Further, in respect of completeness of this information, CA Vimal should perform the following
procedures:

i. review his working papers for the prior years for the known components;
ii. review the parent’s procedures for identification of various components;
iii. make inquiries of the management to identify any new components or any component which
goes out of consolidated financial statements;
iv. review the investments of parent as well as its components to determine the shareholding in
other entities;
v. review the joint ventures and joint arrangements as applicable;
vi. review the other arrangements entered into by the parent that have not been included in the
consolidated financial statements of the group;
vii. review the statutory records maintained by the parent, for example registers under section 186,
190 of the Companies Act, 2013;
viii. Identify the changes in the shareholding that might have taken place during the reporting period.

Including only Relevant Notes to accounts of Old Course – (N22E)
QNO Standalone FST in Consolidated FST
443.060
TITANIUM CNO— GA.300
ABC Limited holds 51% equity of BBB Limited, 63% equity of TTT Limited. There are different information
and explanations which are disclosed by the respective companies in the notes to their financial
statements. At the time of consolidation, management of ABC Limited has consolidated all the
information and explanations disclosed in the notes as well. The principal auditor is of the view that only

those information and explanations should form part of the notes to the consolidated financial
statements which are relevant at group level. Please mention any five aspects which are given in the
notes to the separate financial statements of the parent and the subsidiaries, need not be included in
the consolidated financial statements.
The Ind AS 110 does not give a list of information which is part of the separate financial statement of the
components but that need not be reported in the notes and other explanatory material of the
consolidated financial statements, however, based on section 129(4) and circular issued by MCA, it can be
construed that, even in consolidated financial statements under Ind AS, only those disclosures should be
given which are relevant to consolidated financial statements.

Based on the above discussion, in case of companies, the information such as the following given in the
notes to the separate financial statements of the parent and/or the subsidiary, need not be included in the
consolidated financial statements.

i Source from which bonus shares are issued, e.g., capitalization of profits or reserves or from
securities premium account.

ii Disclosure of all unutilized monies out of the issue indicating the form in which such unutilized
funds have been invested.

iii Disclosure required under Micro, Small and Medium Enterprises Development Act, 2006.

iv A statement of investments (whether shown under “financial assets or non-financial assets as
stock-in-trade) separately classifying trade investments and other investments, showing the
names of the bodies corporate (indicating separately the names of the bodies corporate under the
same management) in whose shares or debentures, investments have been made (including all
investments, whether existing or not, made subsequent to the date as at which the previous
balance sheet was made out) and the nature and extent of the investment so made in each such
body corporate.

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