Ind AS Standards / Ind AS 110, 111 & 112
Ind AS 110, 111 & 112

Consolidation, Joint Arrangements & Disclosure of Interests

Group AccountingControl-based consolidation
Objective & scope

Consolidate on control, not just ownership percentage

Ind AS 110 requires consolidation wherever a parent has control over an investee — power, exposure to variable returns, and the ability to use that power to affect those returns — regardless of the exact shareholding. Ind AS 111 then distinguishes joint operations from joint ventures, and Ind AS 112 sets out what must be disclosed about interests in subsidiaries, joint arrangements, associates and unconsolidated structured entities.

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Key recognition & measurement points
  • Control is assessed holistically — voting rights are one input, but potential voting rights, contractual arrangements, and de facto control also matter.
  • Intra-group transactions, balances, income and expenses are eliminated in full on consolidation.
  • Non-controlling interest (NCI) is presented within equity, separately from the parent's shareholders' equity.
  • A joint arrangement is classified as a joint operation (each party accounts for its own share of assets/liabilities) or a joint venture (equity-accounted), based on the structure and legal form, not just the name of the agreement.
What must be disclosed
  • Significant judgements and assumptions made in determining control, and in classifying joint arrangements.
  • The composition of the group — significant subsidiaries, their proportion of ownership and voting rights held by NCI.
  • Summarised financial information for subsidiaries with material NCI, and for joint ventures/associates.
  • Nature and extent of significant restrictions on the group's ability to access or use assets, or settle liabilities.
Where teams get it wrong

Common pitfalls

The usual mistakes: treating a majority shareholding as automatic control while ignoring contractual arrangements that shift it elsewhere, missing eliminations on intra-group loans and management fees, and misclassifying a joint venture as a joint operation (or vice versa) based on legal form alone.

See the Consolidation module

IndASBridge drafts the Ind AS 110, 111 & 112 working from your existing data — your team reviews and signs off.

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