CA Inter P2 · Chapter 8 · Question 4 of 10
Under section 129(3), a company must prepare consolidated financial statements in addition to its own financial statements where it has:
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) One or more subsidiaries or associate companies
Explanation
Section 129(3) requires a company with one or more subsidiaries or associate companies to prepare a consolidated financial statement of the company and all its subsidiaries and associates in the same form and manner as its own. The Explanation clarifies that 'subsidiary' includes associate company and joint venture.
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