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Company X (Indian listed) holds 100% of Company A (unlisted, India). However, Company X's CFS is prepared under US GAAP — NOT Ind AS. Under Ind AS 110, Company A:
AMust prepare its own CFS — the para 4(a) exemption requires the parent's CFS to be prepared under IND AS
BMay skip CFS only if it files a separate IFRS-compliant report
CMay skip CFS — the parent's CFS at any GAAP suffices
DMust prepare CFS unless its own auditor permits the omission
Answer & Solution
Correct answer: A. Must prepare its own CFS — the para 4(a) exemption requires the parent's CFS to be prepared under IND AS
Para 4(a)(iv) — the exemption requires that the ultimate/intermediate parent's consolidated FS be prepared under IND AS (not under any other GAAP). A US GAAP CFS does not satisfy this condition. Company A must therefore prepare its own CFS even though it is wholly-owned.
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