Consolidation concept in reference of Accounting Standard

 v    Joint Venture (JV) / Jointly Controlled Entities(JCE) (As per Accounting Standard (AS)-27)
      Profit & Loss items of Joint Venture
      No Treatment in Consolidated Financial Statements.
       Balance Sheet items of Joint Venture
(i)                 Asset and Liability proportionately allocated in the Consolidated Balance Sheet.
(ii)               The difference between the cost of investment over the proportionate net assets at the time of acquisition is recognised in the consolidated financial statements as Goodwill / Capital Reserve as the case may be.
v    Associates (As per AS-23)
      Profit & Loss items of Associates –
      Only Proportionate figure of Profit / Loss from Associates transfer to Consolidate P& L    
      a/c and by the same amount increase the Value of Investment in Associates in
      Consolidated Balance sheet.
      Balance sheet items of Associates –
               No Treatment in Consolidated Financial Statements.
v    Subsidiary (As per AS-21)
      Profit & Loss items of Subsidiary –
      Same as Associates (except increase of Investment Value by the same amount).
      Balance sheet items of Subsidiary –
Same as JV /JCE (except Minority Interest disclosure in the liability side of Consolidated Balance sheet).
Calculation of Minority Interest:
Proportion in the Net Assets of Subsidiary other than owned by Parent Company on the balance sheet date
Minority interest represents net assets of subsidiary, not owned by parent company on the date of Consolidation.

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