R Ltd. owns 51% voting power in S Ltd. It, however, holds & discloses all the shares as "Stock-in-trade" in its accounts. The shares are held exclusively with a view to their subsequent disposal in the near future. R Ltd. represents that while preparing Consolidated Financial Statements, S Ltd. can be excluded from the consolidation. As a Statutory Auditor, how would you deal?

Answer rating: 100% (QA)

The detailed answer for the above question is provided below AS 21 Consolidated Financial Statements states that a subsidiary should be excluded from ... View the full answer