The significant changes introduced by the MCA, by way of a notification dated July 27, 2016, to the Companies (Accounts) Rules, 2014 are as follows: i.  Companies that are unlisted (and not in the process of listing), both in India or overseas, are exempted from the obligation to prepare consolidated financial statements, provided that: (i) such company is a subsidiary of another company and all its members have been notified and no objection has been received from the members in relation thereto; and (ii) the ultimate or intermediate holding company of such company files consolidated financial statements (in compliance with applicable accounting standards), with the relevant Registrar of Companies; ii.  The Board’s report in respect of the subsidiaries’ / joint ventures’ / associate companies’ performance is now required to only provide highlights (and not contain a detailed report as was previously required); and iii.  In addition to ‘a firm of internal auditors’, companies may now appoint either individual/s, partnership firm/s, or a body corporate/s to act as internal auditors and a ‘Cost Accountant’ may be appointed along with a ‘Chartered Accountant’.