20 July 2012
Dear All, I have a problem related to investment value in case of consolidation of accounts of subsidiaries. I am requesting to all of you, kindly give your valuable guidance and opinion for the same.
Facts: X Ltd is presently holding company of Y Ltd. X Ltd have 100% share holding in Y Ltd. X Ltd. acquire shares of Y Ltd. as per the scheme of restructuring. As per the scheme all shares of Y Ltd. transferred to X Ltd. from its originally holding company Z Ltd. Z Ltd. acquired shares of Y Ltd. at face value at cost of Rs. 5 lacs. Whereas share of Y Ltd. transferred to X Ltd. by Ztd. without taking any purchase consideration. Shares of Y Ltd. is unquoted.
Query: My query is that in consolidation of account of X, What would be the investment value for shares of Y Ltd. And Any goodwill or capital reserve would be arise?
CAclubindia
