Ind AS and consolidation support

Establish the reporting framework first

A consolidation assignment does not itself establish that Ind AS applies. Record the entity type, listing or proposed listing (including the exchange segment), relevant net-worth history, group relationships and any earlier adoption of Ind AS. The corporate roadmap addresses listing, size and linked group entities; banking, insurance and NBFC cases require their own sector assessment.

The roadmap includes an SME-exchange distinction and continuing application after Ind AS becomes applicable. For companies covered by it, Ind AS applies to both standalone and consolidated statements. Do not decide the framework using only the current year’s net worth or assume that group reporting replaces the entity’s own reporting.

ICAI: Introduction to Indian Accounting Standards, roadmap and transition — study material for May 2026 onward, pages 1.20–1.22 and 1.44–1.45, consulted 2 October 2026. This educational explanation supports the roadmap distinctions above; check the operative rules and later amendments for the entity and reporting period.

For the separate non-Ind-AS framework, ICAI identifies the Companies (Accounting Standards) Rules, 2021 and applicable ICAI standards. Confirm the entity-specific basis before preparing conversion or consolidation workings. ICAI Accounting Standards Board: distinction between Ind AS and Accounting Standards — consulted 1 October 2026.

What the work produces

We map the group perimeter, reporting packages, policy differences and intercompany balances. Support can cover conversion workings, elimination schedules and disclosure information for the agreed reporting framework.

The assignment begins with the reporting purpose, entities in scope, periods, currencies and agreed accounting basis. A reporting-instructions pack can define the submission format, account mappings, supporting schedules, owners and timetable for each entity.

The resulting workings distinguish source-entity balances, reporting adjustments and consolidation entries. Each adjustment records its explanation, supporting evidence and review status, so the group result can be traced back to the packages supplied.

Inputs to organise

• Group structure
• entity financials
• accounting policies
• intercompany ledgers
• acquisition documents
• valuation inputs
• prior consolidation workings.

Identify changes in ownership or group composition during the period and provide the documents supporting them. Nominate a finance contact for each reporting entity, including the person who can explain local ledger mappings and resolve intercompany differences.

Mark incomplete packages and provisional figures explicitly. Keep the reporting package version, extraction date and subsequent changes traceable; replacing a subsidiary’s numbers without recording the change can leave the group working papers inconsistent.

What good records help you see

Two group entities may record the same transaction in different periods or currencies. Consolidation needs a reconciliation process before eliminating the balances.

1. Check each entity package against the agreed scope and reporting instructions.
2. Reconcile source balances and identify mapping or policy differences needing assessment.
3. Match intercompany balances by counterparty and investigate timing, currency and classification differences.
4. Prepare supported adjustments and elimination workings for review.
5. Reconcile the group output to the source packages and approved adjustments.
6. Hand over the reporting pack with disclosure inputs, unresolved matters and responsibility for follow-up.

Example: one entity records a group invoice while the other records it in a later period. Trace the invoice and both postings, identify the reason for the difference and document the agreed treatment. Clearing the unmatched amount solely to force the reconciliation to zero would hide the timing issue.

Agree the boundaries

Applicability, complex instruments, valuation and acquisition accounting may require specialist judgements. Statutory audit remains independent of preparation support.

Confirm the covered entities, periods, systems, deliverables and fees before work starts.

Specify whether the engagement covers recurring consolidation, a reporting transition, a particular transaction or only selected schedules. Identify who supplies valuation and other specialist inputs, who approves policy decisions, and how unavailable information affects delivery.

Management remains responsible for the completeness of the group information and its judgements. Coordinate statement preparation and audit readiness as distinct workstreams. Preparation of a consolidation workbook does not establish that all framework requirements or audit procedures have been completed.