The correct answer is: C. Mandatory for listed companies
A consolidated statement of accounts is a financial statement that presents the financial position and results of operations of a group of companies as if they were a single economic entity. It is prepared by combining the financial statements of the parent company and its subsidiaries, eliminating the intercompany transactions and balances.
The preparation of a consolidated statement of accounts is mandatory for listed companies in India, as per Accounting Standard 21 (AS-21). The standard applies to all listed companies, whether they are parent companies or subsidiaries.
Private limited companies are not required to prepare a consolidated statement of accounts, unless they are a subsidiary of a listed company.
The preparation of a consolidated statement of accounts is a complex process, and it is important to consult with an accountant or auditor to ensure that it is done correctly.
Here is a brief explanation of each option:
- Option A: Optional. This is not correct, as the preparation of a consolidated statement of accounts is mandatory for listed companies.
- Option B: Mandatory for private limited companies. This is not correct, as private limited companies are not required to prepare a consolidated statement of accounts, unless they are a subsidiary of a listed company.
- Option C: Mandatory for listed companies. This is the correct answer, as the preparation of a consolidated statement of accounts is mandatory for listed companies.
- Option D: Mandatory for all companies. This is not correct, as the preparation of a consolidated statement of accounts is only mandatory for listed companies.