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The difference between the end of the reporting period of a subsidiary and that of its parent should not exceed six months. True or false?

The difference between the end of the reporting period of a subsidiary and that of its parent should not exceed six months. True or False?

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Question added by Deleted user
Date Posted: 2013/09/02
Mohamed Elgharib
by Mohamed Elgharib , محاسب أول - مدير فرع , المستورد الأمثل التجارية

FALSE

Sahar Alech
by Sahar Alech , Auditor / Financial Manager , Accounting Services Office

To give a clear financial position of the company the same period for reporting should be carried for both the parent and subsidiary not only that but the related accounts should be reconciled

Sivaraman Sudarsanan
by Sivaraman Sudarsanan , Vice President , Red Sea International Housing

FALSE; Per IFRS10 Consolidation procedures, the reporting dates (between a Parent and its Subsidiary) cannot vary by more than3 months.

Prince Ninan
by Prince Ninan , Audit Executive , Lewis & Pecker

True as per Indian AS

Syed Abdul Hafeez Nahri
by Syed Abdul Hafeez Nahri , Assistant Manager Accounts and Controls , Pakistan Telecom Mobile Limited (a subsidiary of Etisalat Group)

False, There is nothing as such defined in any of the standards about the period, except for the consolidation which should be done for same period (normally of the parent reporting period)

Hypothetically, if it is not first year of acquisition or there is no change of interest;  we can not increase it more than six months, because7 months behind/ahead means subsidiary or parent company is5 months ahead/behind and8 months ahead/behind means4 months behind/ahead.

e.g.

Parent                          Subs

Jan2012-Dec2012         Jul2012 - Jun2013        6 months

Jan2012-Dec2012         Jul2011 - Jun2012        6 months

Jan2012-Dec2012         Aug2012 - Jul2013        7 months ahead

Jan2012-Dec2012         Aug2011 - Jul2012        5 months behind

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