Preparation of Consolidated Financial Statements- 1/2Chapter 2Abhishek Behl2Learning Preview[1]Consolidated Financial Statements-Introduction[2]Group Cash Flo Statements![3]Format of Cash Flo Statements[4]Statements of Chan"es in #$uit%[5]Presentation of Financial Statements[6]SubsidiariesFinancial StatementsFinancial Statements- &e'nition(Statement of Comprehensi)e IncomeStatement of Financial PositionCash Flo StatementsStatement of chan"es in #$uit%*otes to Accounts*otice and director+s ,eportAuditor+s ,eport#-planator% Statements(As per IAS 1Notes: Acquiring dates of Subsidiaries may be diferent. Thus annual basis of these statements should be made as per IAS 1, IAS !, IAS ", I#$S %Group Cash Flo StatementPro'tIncludes non cash items also! For e". &epreciation/ Goodill/ closin" stock/ etc!Cash Flo&ocument "i)in" info about cash in0os and out0os! Indian Companies pro)ide it e)er% $uarterIncludes data on domestic and forei"n currenc%!Accountin" 1ethodsAccrual 1ethodAccrual 1ethodCash 1ethodCash 1ethodAccrual )/s Cash 1ethodAccrual &asis Accounting $e'enue recognition. ,e)enue is reco"ni2ed hen both of the folloin" conditions are met. a! ,e)enue is earned! b! ,e)enue is reali2ed( or reali2able((! ,e)enue is earned hen products are deli)ered or ser)ices are pro)ided! ()pense recognition. #-pense is reco"ni2ed in the period in hich related re)enue is reco"ni2ed*ash &asis Accounting $e'enue recognition. ,e)enue is reco"ni2ed hen cash is recei)ed! ()pense recognition. #-pense is reco"ni2ed hen cash is paid!(,eali2ed means cash is recei)ed!((,eali2able means it is reasonable to e-pect that cash ill be recei)ed in the future!Acti)ities 4nder IAS 5I n 0 oo r o u t 0 of r o m S a l e s a n ds e r ) i c e s !I n c l u d e s c a s h 0 os f r o m p r i n c i p a la c t i ) i t i e s o f b u s i n e s s6peratin" Acti)itiesC a s h 0 or e c e i ) e d f r o mi n ) e s t m e n t s a n d p a % m e n t s f o rm a k i n " i n ) e s t m e n t !I n c l u d e s A s s e t A c $ u i s i t i o nIn)estin" Acti)itiesA c t i ) i t i e sh i c h c h a n " e e $ u i t i e s a n db o r r oi n " c o m p o s i t i o n o f ac o m p a n %Financin" Acti)ities+b,ecti'es7o disclose the in)estors/ lenders and users of 'nancial statement e)er% chan"e in e$uit%7o )alue e$uit% at fair )alue7o disclose $uantum of in)estment in subsidiaries and sub-subsidiaries7o disclose non-controllin" interestShare capitalShare PremiumReservesRetained earningsNon-controling InterestTotal equityOpening BalanceTotal comprehensive income for the ear Transactions with the owners of companIssue of share capitalIssue of bonus shares!n shares sold"ividends#uybac$Income for the yearRevaluation gain !hanges in ownership interest%ccqisition of non-controlling interest%ccqisition of subsidiary!losing Balance Statement of *hanges in (quityIssue of *e SharesIssue of Bonus SharesIssue of ,i"hts SharesAn% Bu% Back#S6P+s IssuedSubsidiar% Ac$uisitionShare Premium1o)ement in ,eser)esAn% mo)ement in unreali2ed loss or "ain reser)es,eser)e chan"es in forei"n e-chan"e "ain or loss-articulars Note No. *urrent .ear -re'ious yearAssetsPropert%/ plant and e$uipment 1Intan"ible assets and "oodill 2Biolo"ical assets 87rade and other recei)ables 9In)estment propert% :6ther in)estments ;&eferred ta- 5#mplo%ee bene'ts >@ shares ac$uired b% parent compan%Partl% 6ned Subsidiaries:>@ or more ac$uired b% parent compan%! Case of minorit% stakeholders hich are called B1inorit% InterestCAccountin" 7reatment.-Subsidiar% ac$uired at the be"innin" of the %earSubsidiar% ac$uired durin" the %ear