CA Inter P1 · Chapter 8 · Question 6 of 10
Under AS 21, when the financial statements of a subsidiary used in consolidation are drawn up to a reporting date different from that of the parent, the difference between the reporting dates should not be more than:
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: D) Six months
Explanation
AS 21 permits use of the subsidiary's financial statements drawn up to a different reporting date provided the difference is not more than six months, with adjustments for the effects of significant transactions or events occurring between the two dates. (Under Ind AS 110 the corresponding limit is three months, a common source of confusion.)
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