Section 39AF(j) in The Companies (Indian Accounting Standards) Rules, 2015
(j)In accordance with its previous GAAP, the first-time adopter may not have consolidated a subsidiary acquired in a past business combination (for example, because the parent did not regard it as a subsidiary in accordance with previous GAAP or did not prepare consolidated financial statements). The first-time adopter shall adjust the carrying amounts of the subsidiary's assets and liabilities to the amounts that Ind ASs would require in the subsidiary's Balance Sheet. The deemed cost of goodwill equals the difference at the date of transition to Ind ASs between:(i)the parent's interest in those adjusted carrying amounts; and(ii)the cost in the parent's separate financial statements of its investment in the subsidiary.
