The Ministry of Corporate Affairs has issued a notification w.r.t Companies (Accounts) Rules, 2014 dated 14th October, 2014 and has clarified the same in regard with Rule 6 of Companies (Accounts) Rules, 2014 which contains the provisions for manner of consolidation of accounts, the following provisos shall be inserted:
Rule 6: The consolidation of financial statements of the company shall be made in
accordance with the provisions of Schedule III of the Act and the applicable accounting standards:
Provided that in case of a company covered under sub-section (3) of section 129 which is not required to prepare consolidated financial statements under the Accounting Standards, it shall be sufficient if the company complies with provisions on consolidated financial statements provided in Schedule III of the Act.
The provisos inserted after this are as follows:
1. The proviso inserted explains that nothing contained in this rule shall apply in the preparation of the consolidated financial statements by an intermediate wholly owned subsidiary, other than a WOS whose immediate parent is a company is a company incorporated outside India.
2. The other proviso explains that nothing contained in this rule shall apply subject to any other law or regulation apply for the Financial Year 2014-15 in the case the Company does not have a subsidiary or subsidiaries but has one or more joint venture or associate companies. Hence, for the consolidation of accounts of accounts of those associate or joint venture companies.
The Notification containing the above amended rules can also be accessed at the link below.