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AnkushAnkush asked 2 years ago

Sir in Cno.443 parent develop group accounting policies and all the subsidiary around the world have to prepare there financial statement as per those policies. My question is as per Sec.286 of Income tax act a reporting entity is selected for reporting international transactions of the group in a country which is also reported in clause 43 of form 3CD. these reporting entities can are not usually parent they can be a subsidiary also, so in this case do the other entities of group have to prepare FS as per accounting standards of the country in which this reporting subsidiary is located??? 

1 Answers
RaviRavi Staff answered 2 years ago

preparing consolidated financial statements is different thing
and reporting under Sec 286 is different thing
harmonisation of accounting policy is done for consolidation as per requirement of holding company
for sec 286 reporting income tax rules need to be applied

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