Major Indian and multi-national corporations need to understand how to consolidate financial statements in order to accurately represent financial results for investors and other business purposes. When one creates an empire, a financial statement is a reflection of financial results for all related entities, as well as for the original company assets. When a parent company acquires stock in a company to create a subsidiary, the subsidiary maintains its own separate accounting records. However, the parent company controls the subsidiary – the subsidiary doesn’t operate independently. Because of this, the parent company will consolidate financial statements to present its own financial operations, as well as those of the subsidiary.
At FACPL, we don’t believe in a one-size-fits-all package for our clients. Call us to discuss more on how we can help you to consolidate your accounts and be in compliance with Indian GAAP/IND-AS/IFRS/US GAAP.