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?

Question

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?

Mohamed Elgharib · Answer

<p>FALSE</p>

Sahar Alech · Answer

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 · Answer

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

Prince Ninan · Answer

True as per Indian AS

Syed Abdul Hafeez Nahri · Answer

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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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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