CA Final · Financial Reporting · Consolidated Financial Statements
Veda Industries Ltd prepares consolidated financial statements for the year ended 31 March 2026. Under Ind AS 110, which description best defines consolidated financial statements?
Consolidated financial statements are the financial statements of a group in which the assets, liabilities, equity, income, expenses and cash flows of the parent and its subsidiaries are presented as those of a single economic entity. Partial or side-by-side presentation does not meet this definition.
- AFinancial statements in which only the net assets of the subsidiaries are added to the parent's investment
- BFinancial statements of a group in which the assets, liabilities, equity, income, expenses and cash flows of the parent and its subsidiaries are presented as those of a single economic entityCorrect
- CFinancial statements in which the parent's separate statements are shown alongside the subsidiaries' statements without any combination
- DFinancial statements that include only the income and expenses of subsidiaries, with their assets and liabilities excluded
Explanation
Ind AS 110 defines consolidated financial statements as those of a group in which the assets, liabilities, equity, income, expenses and cash flows of the parent and its subsidiaries are presented as those of a single economic entity. The other options describe partial or side-by-side presentation, which is not what the definition says.
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