Q : Financials of subsidiaries sold during the year are reported in accounts for the relevant accounting year. However, if those subsidiaries do not remain as subsidiaries as at the end of previous year (i.e 31 March), should they be considered for CbCR and Master File reporting?

Kirti Ved (Senior Manager,Tata Steel)

Kunj Vaidya (Partner and Leader, Transfer Pricing, PwC India)

The criteria of inclusion of an entity should be driven by the rules for consolidation of financial statements. If the consolidation rules in such countries require consolidation of subsidiaries sold during the year, such subsidiaries should also be included.

However, there is no such requirement under the IFRS/ IGAAP/ Ind AS to do so. Accordingly, the information on subsidiaries sold off during the year should not be required to be considered as part of the AP 13 documentation.

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