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Parent Ltd.'s group has: Subsidiary A (consolidates), Subsidiary B (consolidation exempt), Associate C (consolidates), Investment Entity D (exempt from consolidation, holds subsidiary S which does not provide investment-related services), and Entities P/Q/R/S (no subsidiaries/JVs). Identify which entities prepare 'separate financial statements' under Ind AS 27.
AOnly D
BParent, A, C, D — these have subsidiaries/JVs/associates and prepare SFS (in addition to CFS where applicable); B prepares SFS as its only FS (consolidation exempt); D prepares SFS as its only FS (investment-entity exempt). P/Q/R/S prepare FS but those are NOT 'separate FS' since they have no subsidiary/associate/JV
CAll eight entities
DOnly Parent, A and C
Answer & Solution
Correct answer: B. Parent, A, C, D — these have subsidiaries/JVs/associates and prepare SFS (in addition to CFS where applicable); B prepares SFS as its only FS (consolidation exempt); D prepares SFS as its only FS (investment-entity exempt). P/Q/R/S prepare FS but those are NOT 'separate FS' since they have no subsidiary/associate/JV
Ind AS 27 'separate FS' label applies only to FS of an entity that HAS subsidiaries, associates or JVs. P/Q/R/S have none, so their FS are simply 'financial statements', not separate FS. B and D prepare SFS as their only FS due to consolidation exemptions.
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