Page 254 - CA Final Audit Titanium Full Book. (With Cover Pages)

CA Ravi Taori
a) The net assets of each component and the net assets expressed as a percentage of the total consolidated net
assets.
b) The share of each component in the profit or loss, presented as both the amount and the percentage share in
relation to the consolidated profit or loss.
c) The amount of other comprehensive income (OCI) for each component and the percentage of OCI as it
relates to the total Consolidated OCI.
MCA: Ministry of Corporate Affairs (dated October 14, 2014) instructs companies to include only relevant
disclosures in their consolidated financial statements, avoiding duplication of information from separate
financial statements.
Ind AS 110: Ind AS 110 doesn't specify what information should be in separate subsidiary statements and
excluded from consolidated statements. But it implies that only relevant disclosures should be in the consolidated
financial statements, based on section 129(4) and MCA circular 39/2014.
AS 21: AS 21 provides guidelines on handling component details that may not need repetition in the
consolidated financial statement notes.

Examples of items need not be included in the consolidated financial statements.
(Shortcut: Foreign FISCal)
Foreign Exchange Earnings Disclosures:
- Earnings in foreign exchange categorized by export of goods, royalty, interest, and other income.
Foreign Currency Payments
- Expenditure in foreign currency for royalty, know-how, professional fees, interest, etc.
- Foreign currency remittances for dividends, specifying non-resident shareholders and shares involved.
Import Disclosures:
- Value of imports categorized by raw materials, components, and capital goods.
- Value of imported vs. indigenous raw materials, spare parts, and components consumed.
Specific Regulatory Disclosures:
- Disclosure requirements under the Micro, Small and Medium Enterprises Development Act, 2006.
Capital and Investments Disclosures:
- Source of bonus share issuance.
- Statement of investments, categorizing trade and other investments in various corporate bodies.

(CNO GA.320) Management Representations
Requirement of SA 580: SA 580, “Written Representations” requires the auditor to obtain written
representations from management and, where appropriate, those charged with governance.
Responsibility for Consolidated Financial Statements: The auditor of the consolidated financial statements
should obtain evidence that the management of the parent acknowledges its responsibility for a true and fair
presentation of the consolidated financial statements in accordance with the financial reporting framework
applicable to the parent and that parent management has approved the consolidated financial statements.
Written Representations on Material matters: In addition, the auditor of the consolidated financial statements
obtains written representations from parent management on matters material to the consolidated financial
statements.
Examples of Representations:
(Shortcut: SCAR Mgt Rep)
• Identification of reportable Segments for segmental reporting.
• Completeness of components included in the CFS.
• Appropriateness and completeness of permanent and current period consolidation Adjustments, including the
elimination of intra-group transactions.
• Identification of Related parties and related party transactions for reporting.

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