The correct answer is: A. AS 11
AS 11, “Accounting for Business Combinations”, is an accounting standard issued by the Institute of Chartered Accountants of India (ICAI). It prescribes the accounting treatment for business combinations, including the recognition and measurement of the assets, liabilities, and equity of the combining entities, as well as the preparation of consolidated financial statements.
AS 21, “Accounting for Investments in Associates”, is an accounting standard issued by the ICAI. It prescribes the accounting treatment for investments in associates, including the recognition and measurement of the investment, the treatment of dividends received from an associate, and the impairment of the investment.
AS 22, “Accounting for Investments in Joint Ventures”, is an accounting standard issued by the ICAI. It prescribes the accounting treatment for investments in joint ventures, including the recognition and measurement of the investment, the treatment of income and expenses from a joint venture, and the impairment of the investment.
AS 23, “Accounting for Investments in Financial Instruments”, is an accounting standard issued by the ICAI. It prescribes the accounting treatment for investments in financial instruments, including the recognition and measurement of the investment, the classification of the investment, and the impairment of the investment.
In the case of a holding company and its subsidiary company, the consolidated financial statements are prepared in accordance with AS 11. The consolidated financial statements present the financial position, financial performance, and cash flows of the group as if it were a single economic entity. The consolidated financial statements are prepared by adding together the financial statements of the parent company and its subsidiaries, eliminating the intercompany transactions and balances.