H Limited is an Investment Company preparing its Financial Statements in accordance with Ind AS. The Company
Question:
H Limited is an Investment Company preparing its Financial Statements in accordance with Ind AS. The Company obtains funds from various investors & commits its performance to fair return & capital appreciation to its investors. During the year under audit, it had been observed that the Company had invested 25% in S1 Ltd., 50% in S2 Ltd. & 60% in S3 Ltd. of the respective share capitals of the Investee Companies. When checking the investment schedule of the Company, an issue cropped up as to whether there would arise any need to consolidate accounts of any such investee companies with those of H Limited in accordance with section 129(3) of the Companies Act, 2013 which contains no exclusion from consolidation. Analyze the issues involved & give your views.
Modern Advanced Accounting in Canada
ISBN: 978-1259087554
8th edition
Authors: Hilton Murray, Herauf Darrell