Which accounting standard notified under the Companies (Accounting Standards) Rules, 2021 deals with the preparation and presentation of consolidated financial statements?
Question and options
Which accounting standard notified under the Companies (Accounting Standards) Rules, 2021 deals with the preparation and presentation of consolidated financial statements?
AS 27
AS 14
AS 21
AS 23
Answer and explanation
Correct answer: C - AS 21
AS 21, Consolidated Financial Statements, lays down how a parent prepares and presents consolidated financial statements for its group. AS 23 deals only with accounting for investments in associates within consolidated statements, AS 27 with interests in joint ventures, and AS 14 with amalgamations. Companies following Ind AS use Ind AS 110 instead.