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A ltd is sole beneficiary of x trust, which is holding 25% of shares of B ltd. Whether A ltd is required to consolidate its accounts considering accounts of B ltd, being Associate?

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Posted By: Nitesh 9 year(s) ago

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Tarun Ahuja

If I understand correctly, X trust is holding shares of B Ltd. Hence B Ltd is the associates of X trust. With the fact that A Ltd is the Sole beneficiary of X trust means, I understand that X trust is holding 100% shares of A Ltd it means X trust is in the position of holding of A Ltd. In such a scenario there is no direct relationship between A Ltd and B Ltd. In the Consolidated Accounts of A Ltd there is no need to consolidated accounts of B Ltd. If A Limited is holding the 25% shares of B Ltd then the accounts of B Ltd needs consolidation as per AS 23.

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