Control-Based Consolidation requires power, variable returns, and ability to affect returns, with tailored rules for investment entities.

Ind AS 110 requires a parent to prepare consolidated financial statements when it controls subsidiaries, subject to specified parent and investment-entity exceptions. Control exists only where an investor has power over relevant activities, exposure or rights to variable returns, and the ability to use power to affect those returns. Consolidation combines parent and subsidiary financial information, applies uniform accounting policies, eliminates intragroup balances and transactions, and presents non-controlling interests separately within equity. Investment entities generally measure subsidiaries at fair value through profit or loss, but consolidate service subsidiaries related to investment activities.

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