Question
Consolidated Financial statements are covered under
which of the following accounting standards?Solution
AS 21 Consolidated Financial Statements should be applied in preparing and presenting consolidated financial statements for a group of enterprises under the sole control of a parent enterprise. A parent company presenting its consolidated financial statements must present these statements along with its standalone financial statements. The users of financial statements of a parent company are typically concerned with and are required to be educated about, the results of operations and financial position of not only the company itself but also of that group together.
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