Consolidation -- Different year end

[maani]

If the reporting dates of Holding Company and its Subsidiary are different, the subsidiary is required to prepare additional financial statments for consolidation purposes as of the same date of the parent entity......in this case, adjustments must be made for the effects of significant transactions that have occured between the date of the Subsidiary's and the date of the Holding entity's financial statements.....

Query 1

Holding entity's year end 30 June 2008
Subsidiary's year end 30 September 2008

Un-insured assets worth Rs. 1,000,000 were lost due to fire on 31 August 2008.

What adjustment is required?


Query 2

Holding entity's year end 30 September 2008
Subsidiary's year end 30 June 2008

Un-insured assets worth Rs. 1,000,000 were lost due to fire on 31 August 2008.

What adjustment is required?

[maani]

Kamran bhai, waiting for your response, infact i didn't find any example of "significant transactions" that needs adjustment as per IAS 27....thats why I asked the above query....

[maani]

No one here???????????
Kamran bhai, everything alright na? not touched the forum in these 2-3 days....

[kamranACA]

Dear,


I was extremely busy these days. No problem otherwise. I forwarded your query to some one else and he gave me following answer. See it and if there is some issue let me know.

First Case


The Holding Company will do nothing except a disclosure as if the assets of its own lost by fire after the balance sheet date.

Second Case


The company will prepare the adjusted financial statements for consolidation purposes as at the date of Holding company's balance sheet date.


Regards,


KAMRAN.

[maani]

Hi,

This means the subsidiary will prepare 1st quarter, half yearly, third quarter, annual and "adjusted financial statements" in 2nd case....

And in first case the subsidiary will prepare 3/4 yearly financial statments....

Do you have any example of a Group having such consolidated financial statements....

[kamranACA]

Dear,

Please check following accounts

-Nishat Mills Limited,

-Shakarganj Mills Limited,

-MCB Bank Limited

-PTCL (perhaps you can find its accounts)

There could be so many examples. You can visit library of KSE or LSE, where annual reports of various companies are arranged sectorwise for the study of visitors. You can also search on the internet through search engines.


Regards,


KAMRAN.