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?
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
CAclubindia
