IND AS EYE

  Offsetting of Income & Expenditure: Facts of the case: Company RIGG has entered into a contract with the customer to construct and handover the Building. However, based on the requirement of the customer there is an addition in scope of work and the costs incurred along with service charge are reimbursed from the customer. RIGG subcontracts the work to the third party and recovers the cost along with service charge from the customer. Can the revenue and expenditure related to additional scope of work be netted off in P&L account?   Extracts of the standard: As per Ind AS 1: As per para 32, An entity shall not offset assets and liabilities or income and expenses, unless required or permitted by an Ind AS. As per Para 33, An entity reports separately both assets and liabilities, and income and expenses. Offsetting in the statement of profit and loss or balance sheet, except when offsetting reflects the substance of the transaction or other event, det...

                  Consolidation of financial statements- Ind AS 110 When does consolidation required ? Sec 129(3) of the Companies Act 2013 requires all companies to present consolidated financial statements (CFS) apart from separate financial statements. SEBI-LODR also requires listed companies to present its consolidated financial statements. Such  Consolidated financial statements are required when the entity has a Subsidary, Associate or Joint venture. Ind AS 110 Specifies procedures for consolidation after acquisition date Ind AS 103 "Business Combinations" specifies procedures for consolidation on acquistion date     Although there is an exception for preparation of consolidated financials statements  which you can understand easily by reading the scope. (a) A parent need not present consolidated financial statements if it meets all the following conditions: it is a wholly-owned subsi...