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Mr. X (an individual) holds 100% of Company A. Mr. X is not a corporate entity and does not prepare consolidated financial statements under Ind AS available for public use. Under Ind AS 110, Company A:
AMay avail the para 4(a) exemption because Mr. X is the ultimate owner
BMay choose to prepare CFS only if Mr. X explicitly requests it
CIs exempt because individuals are not required to prepare any consolidated statements
DMust prepare its own consolidated financial statements — the para 4(a) exemption requires the parent to be an entity that prepares IND AS CFS for public use
Answer & Solution
Correct answer: D. Must prepare its own consolidated financial statements — the para 4(a) exemption requires the parent to be an entity that prepares IND AS CFS for public use
Para 4(a)(iv) — the exemption requires the ultimate/intermediate parent to PRODUCE Ind AS CFS available for public use. An individual (Mr. X) cannot satisfy this condition. Company A must prepare its own CFS. (This is the standard "individual owner" defeat of the exemption — common in family-owned groups.)
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