Ind AS 110: Consolidated Financial Statements#
Control Definition#
An investor controls an investee when:
- Power over the investee
- Exposure to variable returns
- Ability to use power to affect returns
Indicators of Control#
- Voting rights or similar rights
- Representation on board
- Material transactions between parties
- Management personnel sharing
Consolidation Procedure#
- Combine assets, liabilities, equity
- Eliminate intra-group balances
- Eliminate intra-group transactions
- Recognize NCI
- Recognize goodwill
Consolidation Date#
Subsidiary acquired:#
- Consolidated from acquisition date
- De-consolidated from date control lost
Uniform accounting policies#
- Adjust subsidiary's policies to match parent
Non-controlling Interest (NCI)#
Measurement options:#
- At fair value (full goodwill method)
- At proportionate share of net assets
Presentation:#
- Shown in equity, separate from parent
- Share of profit shown separately
Loss of Control#
When control is lost:#
- De-recognize assets and liabilities
- Recognize retained investment at fair value
- Recognize gain or loss in P&L
Disclosure Requirements#
- Significant judgments in determining control
- Nature and extent of restrictions
- Details of subsidiaries
- Transactions with NCI