Home > Experts > Accounts > Consolidation of P&L of a dispose off (during the F.Y.) subsidiary


Please Wait ..

Sign-in to your account


Username:
Password:

Remember Me

Forgot your password?

Sign-up now



Join CAclubindia.com and Share your Knowledge. Registered members get a chance to interact at Forum, Ask Query, Comment etc.


Consolidation of P&L of a dispose off (during the F.Y.) subsidiary (Accounts)

Report Abuse
This query is : Resolved



( Author )
06 September 2007

hi...
while consolidating the P&L of one out of many subsidiaries,i am in problem how to calculate gain/loss on disposal of investment in subsidaries as per AS-21.
This subsidiary has brought forward loss from previous years and aslo have loss for current F.Y. upto the cncerned period. if there would be a practical example or working procedure for calculating gain/loss on diposal of investment, pls help its urgent since last date for submition of result is coming to near...

Thanks


R.V.RAO

( Expert )
10 September 2007

ONE WAY IN WHICH WE SOLVED THE PROBLEM IN A PARTICULAR YEAR WAS BY STATING THAT SINCE THE SUBSIDIARY WAS NOT OPERATING OR DEFUNCT,IT WAS OFFERED FOR SALE AND ALSO WE R LOOKING AT OTHER AREAS/AVENUES OF DISPOSAL/ DISINVESTING IN THE UNIT. HENCE AS THE CONTROLOF THE SUBSIDIARY IS INTENDED TO BE TEMPORARY, NO NEED TO COMPLY AS 21 .THE AUDITOR ALSO STATED SAME AND WE R THROUGH.
NEXT YEAR YOU MAY SAY YOUR EFFORTS TO DISPOASE OR DISINVEST ARE NOT SUCCESSFUL AND HENCE YOU MAY PLAN NEXT YEAR ACCOUNTING /ACTION AS TO WHAT SUITS YOU MOST.
THE FACTS OF THE ABOVE CASE WERE STATED AS DEADLINE IS APPROACHING IN YOUR CASE.OTHERWISE YOUR STATUTORY OR INTERNAL AUDITORS FROM THEIR EXPOSURE CAN SUITABLY ADVISE YOU AS STATUTORY AUDITOR NEEDS COMPLY AS-21 AND TO SUITABLY REPORT TO SHAREHOLDERS.
BUT APPLICABILITY OR SUITABILITY OF THIS SUGGESTION TO YOUR CASE IS UPTO YOU TO DECIDE.WHAT I GAVE IS AN ACTUAL EXPERIENCE.
C.A R.V.RAO


Previous

Next

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


Click here to login ( Members Login ) now


Similar Resolved Queries :








submit










Quick Links





back to the top