Relevance of AS 21 Consolidated Financial Statement
This standard must be applied when representing interest in backups in a different budget summary of the parent. It is to be noticed that while setting up a combined fiscal summary, different principles likewise remain important along these lines with respect to independent proclamations.
This bookkeeping standard doesn't manage: bookkeeping strategies for amalgamations and impacts on combination, which incorporates generosity which emerges on amalgamation representing interests in JVs (joint endeavors) representing interests in partners
Introduction of Consolidated Financial Statements
A parent organization introducing its united budget summaries must present these announcements alongside its independent fiscal summaries. The clients of budget reports of a parent organization are normally worried about and are required to be taught about, the consequences of activities and monetary situation of the organization itself as well as of that bunch together.
This prerequisite is served by offering the clients of fiscal reports –
(a) independent fiscal summaries of a parent; and
(b) merged fiscal reports that give budgetary data about the business bunch as that of a solitary endeavor without regard to the legitimate limitations of the particular lawful elements