When a company owns all the common stock of its subsidiaries, the company doesn’t really need to publish reports about its subsidiaries’ individual results for the general public to peruse.
This Statement applies to all entities that prepare consolidated financial statements, except not-for-profit organizations, but will affect only those entities that have an outstanding noncontrolling interest in one or more subsidiaries or that deconsolidate a subsidiary.
Not-for-profit organizations should continue to apply the guidance in Accounting Research Bulletin No.
The accounting for subsidiaries, joint ventures and associates in the consolidated financial statements requires extensive financial information from those respective investees.
For starters, for examples, the financial statements of the subsidiaries, associates and joint ventures must also be prepared following the Indian accounting standards and conform to the accounting policies of the parent company.
However, when reporting financial information, the parent company is required to submit financial statements that combine their information with that of their subsidiaries.