Easy Office

Consolidation of financial statement

This query is : Resolved 
Avatar

Querist : Anonymous

Profile Image
Querist : Anonymous (Querist)
29 May 2015 The company has formed a SPV for the specific project. The listed company has purchased a 51% stake in this company, so that it became the subsidiary of the listed company. Listed company has performed a contract for the subsidiary company an recorded it as is income. And the subsidiary company has recorded it as its expenses, and the whole amount is capitalised in the books of subsidiary.
So that at the time of consolidation inter company transaction should be eliminated while compilation of Financial Statement. mgt content the inter co. transaction shold not be eliminated, while all cost has been capitalised. whether contention of the managment is right or wrong????
Profile Image

CS,CA F,Numrologi TusharSampat

Profile Image

CS,CA F,Numrologi TusharSampat (Expert)
29 May 2015 As per as 21 holding co needs to eliminate the inter compnay transactions.
Avatar

Querist : Anonymous

Profile Image
Querist : Anonymous (Querist)
29 May 2015 What about the applicability of IFRIC 12



Profile Image

CS,CA F,Numrologi TusharSampat

Profile Image

CS,CA F,Numrologi TusharSampat (Expert)
29 May 2015 Till fy 14-15 only exisiting AS SHALLbe applicable and not IFRIC.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

CAclubindia's WhatsApp Groups Link


Similar Resolved Queries


loading


Unanswered Queries


Easy Office

Trending Online Classes

view all classess
CCI Pro


Answer Query



Quick Links