Clarification on matters relating to Consolidated Financial Statement

MCA has issued Cir­cu­lar No-39/2014 dat­ed 14.10.2014 on Clar­i­fi­ca­tion on mat­ters relat­ing to Con­sol­i­dat­ed Finan­cial Statement

Gov­ern­ment has received rep­re­sen­ta­tions from stake­hold­ers seek­ing clar­i­fi­ca­tions on the man­ner of pre­sen­ta­tion of notes in Con­sol­i­dat­ed Finan­cial State­ment (CFS) to be pre­pared under Sched­ule III to the Com­pa­nies Act, 2013(Act). These rep­re­sen­ta­tions have been exam­ined in con­sul­ta­tion with the Insti­tute of Char­tered Accoun­tants of India (ICAI) and it is clar­i­fied that Sched­ule III to the Act read with the applic­a­ble Account­ing Stan­dards does not envis­age that a com­pa­ny while prepar­ing its CFS mere­ly repeats the dis­clo­sures made by it under stand-alone accounts being con­sol­i­dat­ed. In the CFS, the com­pa­ny would need to give all dis­clo­sures rel­e­vant for CFS only.

2. This issues with the approval of the com­pe­tent authority.

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