"How should the consolidation of a Holding company and a subsidary' subsidary be done? Should it be first be consolidated with the subsidary or can both subsidary co. and its subsidary together be consolidated with the holding comp ?"
Eg: x - holding comp y - subsidary of x z - subsidary of y.
Should the accounts of y and z be consolidated first and then consolidated with x, or can all the three x, y and z be consolidated together ? What is the treatment as per AS 21 ?
09 May 2011
Thanks for the reply Mr.Mandar. But why can't it be done the other way ? why can't 'y' and 'z' be consolidated together with 'x'? Is there any Accounting standard which prohibits us from doing so ?
CAclubindia
