Accounting treatment in consolidated financials
This query is : Resolved
CA Vandana Rathi
(Querist)
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?
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
(Expert)
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
Regards
CA Kamal Kant
CA Vandana Rathi
(Querist)
27 March 2019
Ok thanks for your considerable reply.
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