Consolidated Financial StatementsSubjectiveQuestion 5719 of 6
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What are the legal provisions governing the preparation of consolidated financial statements in your country? Explain the provisions of the Companies Act, 2013, regarding consolidated financial statements.

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Detailed Solution & Explanation

The legal provisions governing the preparation of consolidated financial statements in India are contained in the Companies Act, 2013. According to Section 129 of the Companies Act, 2013, a company shall prepare consolidated financial statements if it has one or more subsidiaries. The consolidated financial statements shall be prepared in accordance with the accounting standards notified by the Central Government. The Act also requires that the consolidated financial statements be presented to the members of the company at the annual general meeting, along with the annual report. Additionally, the Act provides that the consolidated financial statements shall include the financial statements of the parent company and all its subsidiaries, and shall be prepared using the same accounting policies as the parent company.
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