Page 246 - CA Final Audit Titanium Full Book. (With Cover Pages)

CA Ravi Taori
Board Approval:
The consolidated financial statements shall also be approved by the Board of Directors before they are signed on
behalf of the Board, along with its standalone financial statements and shall also be laid before the annual general
meeting of the company along with the laying of its standalone financial statement.
Attachment of Salient Features:
The company shall also attach along with its financial statement, a separate statement containing the salient
features of the financial statement of its subsidiary(ies) in Form AOC-1.
Exemption:
2. Section 129(6):
As per 129(6) of the Companies Act, 2013, the Central Government may, on its own or on an application by a
class or classes of companies, by notification, exempt any class or classes of companies from complying with any
of the requirements of section 129 or the rules made thereunder.
If it is considered necessary to grant such exemption in the public interest and any such exemption may be
granted either unconditionally or subject to such conditions as may be specified in the notification.
3. Investment Entity Exception:
Further, an investment entity need not present consolidated financial statements if it is required, in accordance
with paragraph 31 of Ind AS 110, to measure all of its subsidiaries at fair value through profit or loss.
Determination by Parent:
A parent shall determine whether it is an investment entity.
3A. Definition of Investment Entity:
An investment entity is an entity that:
Funds from Investors:
(a) obtains funds from one or more investors for the purpose of providing those investor(s) with investment
management services.
Commitment to Investors:
(b) commits to its investor(s) that its business purpose is to invest funds solely for returns from capital
appreciation, investment income, or both; and
Performance Measurement:
(c) measures and evaluates the performance of substantially all of its investments on a fair value basis.
3B. Paragraph 33 - Ind AS 110:
However, as per paragraph 33 of Ind AS 110, the parent of an investment entity shall consolidate all entities that
it controls, including those controlled through an investment entity subsidiary, unless the parent itself is an
investment entity.

(CNO GA.060) Responsibility of Parent
The responsibility for the preparation and presentation of consolidated financial statements, among other things,
is that of the management of the parent. This includes:
1. Identifying Components: Identifying components and including the financial information of the
components to be included in the consolidated financial statements.
2. Parent's Instructions: The parent ordinarily issues instructions to the management of the component
specifying the parent’s requirements relating to financial information of the components to be included in the
consolidated financial statements.
The instructions ordinarily cover the accounting policies to be applied, statutory and other disclosure
requirements applicable to the parent, including the identification of and reporting on reportable segments, and
related parties and related party transactions, and a reporting timetable.
3. Obtaining Financial Information: obtaining accurate and complete financial information from
components.
4. GAAP Conversion: GAAP conversion, where applicable.
5. Harmonization of Policies: harmonization of accounting policies and accounting framework; and

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