AS-21 querry
This query is : Resolved
CA Lokesh Pokharna
(Querist)
31 October 2010
Hi Experts I M Just Reading Accounting Standard 21....& I HAve A problem ..
While Consoldating FS Of parent And Subs. wht is the treatment of investment made by parent in subs?????????
By assuming tht Rilance Ind LTD Acquired 60% Stake in GSFC LTD For1200 Crore And Total Equiity Capital of GSFC 100 Crores
plsssssssss tell me wht will b treatment in this case......
thanx in advvvvval
While Consoldating FS Of parent And Subs. wht is the treatment of investment made by parent in subs?????????
By assuming tht Rilance Ind LTD Acquired 60% Stake in GSFC LTD For1200 Crore And Total Equiity Capital of GSFC 100 Crores
plsssssssss tell me wht will b treatment in this case......
thanx in advvvvval
01 November 2010
The cost of investment of parent in each subsidiary should be cancelled/eliminated with parent's portion of equityof each subsidairy on the date on which the investment was acquired in each subsidiary.
Ramanananda
(Expert)
01 November 2010
in the given case, RIL has 60% stak and invested an amount of 1200 crores where as actual paid up capital is 100 crores.
actual share of the RIL in its sub is 60%
representative capital is 60 crores and other 40 crores in minority interest.,
balance amount is 1140 crores.
this compare the same with the pre and post acquisition profits and take that part of the pre acquisition profits for the computation of the goodwill/capital reserves...
other post acuqisition profits u can add to ur reserves while consolidating....
incase of further doubts mail me... or post it on caclubindia
actual share of the RIL in its sub is 60%
representative capital is 60 crores and other 40 crores in minority interest.,
balance amount is 1140 crores.
this compare the same with the pre and post acquisition profits and take that part of the pre acquisition profits for the computation of the goodwill/capital reserves...
other post acuqisition profits u can add to ur reserves while consolidating....
incase of further doubts mail me... or post it on caclubindia
Message likes :
1 times
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- GST Audit whether Govt Companies are exempt?
- PTRC Show Cause Notice on Email
- Accounting treatment of AMC alongwith the purchase of Laptop
- Unable to File TDS Q2 Return – New TRACES Portal Error
- Issuing of delivery challan by seller of goods
- Not ordinarily resident having partnership income in India and salary in USA is any form to filed be
- Transfer of Physical Stock Between Two Proprietorship Concerns
- Condonation Request sec 119(2) b -Enhancement Limit of Leave Exemption prior to AY 2023
- GST Treatment of Purchases with GST Paid where Outward Supplies of Manufactured CattleFeed Exempt
- EPF ECR NEW RULES Sep 17th 2026
- Expert Help Required for TDS Refund 100000 Through TRACES – AY 2022–23
- IMPORT PURCHASE ENTRY PASSED IN BOOKS OF ACCOUNT
- FAST DS 26 Undisclosed Foreign Asset Disclosure Scheme 2026
- Regime change
- Goods sold but invoice not issued
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- FAST-DS 2026 Under Tax Law - No recourse or support for person declaring via this scheme?
- Guidance Needed: Linking Multiple Form 26QB Payments and Responding to ITD Defaulter Notice
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
