Save Rs 588 on a 2-Year Ad-Free CAclubindia Pro Membership. Subscribe Now!

Accounting treatment in consolidated financials

Save Share

This query is : Resolved

CA Vandana Rathi (Querist)
Follow

20 December 2018 Scenerio:-
There are three companies A Ltd, B Ltd and C Ltd.
B Ltd is a wholly owned subsidiary of A Ltd, thereby in Consolidated Financials of A Ltd, B ltd is also included.
C Ltd is a third party.It is not being consolidated with A Ltd.
A ltd has its 95-98% of domestic sales to C ltd. While C ltd further sale its stock to B ltd, which it had purchased from A Ltd.
There is no control in C ltd by either company(A or B ltd).

Query:-
Whether in Consolidated Financials does it amounts to Sales return for A Ltd?

Kamal Kant Mittal

Kamal Kant Mittal (Expert)
Follow

03 January 2019 i think it should not be treated as sales return and stock with B should appear as it is in consolidated financials even.
Regards
CA Kamal Kant

CA Vandana Rathi

CA Vandana Rathi (Querist)
Follow

27 March 2019 Ok thanks for your considerable reply.

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