Accounting Standard (AS) 23 (issued 2001) Accounting for Investments in Associates in Consolidated Financial Statements Paragraphs OBJ C!

I" SCO# $ FI%I!IO%S ACCO&%!I%' FO( I%" S!) %!S * A##.ICA!IO% OF !CO%!I%' %CI S $ISC.OS&( !(A%SI!IO%A. #(O"ISIO%S !/e follo0ing Accounting Standards Inter1retations (ASIs) relate to AS 232 +&I!, ) !-O$ 1-2 3-6 7-9 10-20 21 22-25 26

+&I!, ) !-O$

ASI 3 4 Inter1retation of t/e term 5%ear Future6 ASI 17 4 !reatment of #ro1osed $ividend under AS 23 ASI 18 4 Ad9ustments to t/e Carr:ing Amount of Investment arising from C/anges in ;uit: not Included in t/e Statement of #rofit and .oss of t/e Associate ASI 13 4 Consideration of #otential ;uit: S/ares for $etermining 0/et/er an Investee is an Associate under AS 23

!/e a<ove Inter1retations are 1u<lis/ed else0/ere in t/is Com1endium= Accounting Standard (AS) 23 (issued 2001) Accounting for In est!ents in Associates in "onso#idated $inancia# State!ents (This Accounting Standard includes paragraphs set in bold italic type and plain type, which have equal authority. Paragraphs in bold italic type indicate the main principles. This Accounting Standard should be read in the context of its ob ective and the Preface to the Statements of Accounting Standards!." Accounting Standard (AS) 23% &Accounting for In est!ents in Associates in "onso#idated $inancia# State!ents'% issued () the "ounci# of the Institute of "hartered Accountants of India% co!es into effect in respect of accounting periods co!!encing on or after 1-*-2002+ An enterprise that presents conso#idated financia# state!ents shou#d account for in est!ents in associates in the conso#idated financia# state!ents in accordance ,ith this Standard+2 -he fo##o,ing is the te.t of the Accounting Standard+ O<9ective -he o(/ecti e of this State!ent is to set out princip#es and procedures for recognising% in the conso#idated financia# state!ents% the effects of the in est!ents in associates on the financia# position and operating resu#ts of a group+ 1 Attention is specifica##) dra,n to paragraph *+3 of the Preface% according to ,hich Accounting Standards are intended to app#) on#) to ite!s ,hich are !ateria#+ 2 It is c#arified that AS 23 is !andator) if an enterprise presents conso#idated financia#

26. On the first occasion when investment in an associate is accounted for in consolidated financial statements in accordance with this Statement, the carrying amount of investment in the associate should be brought to the amount that would have resulted had the equity method of accounting been followed as per this Statement since the acquisition of the associate. The corresponding adjustment in this regard should be made in the retained earnings in the consolidated financial statements.