Consolidation of accounts
Querist : Anonymous
A query regarding consolidation of accounts.
If the holding company has provided 100% provision for investment in subsidiary but in the books of subsidiary company, it has not provided for any losses, i.e; its share capital is still continuing. On consolidation of their accounts, how do we eliminate the investment against share capital.
Kindly advice.
Eliminate the investment and provision in holding books and share capital & p&l debit (loss) balance in subsidiary books
Querist : Anonymous
Can you further elaborate on the same with an example.
Capital Rs.100 under liability & accumulated loss Rs.100 under assets
In Holding company Investment is subsidiary Rs.100 under assets and Provision for Investment Rs.100 under liability so you can eliminate as follows
Share capital in Subsidiary Rs.100 & Investment in shares in holding Rs.100
Accumulated Loss balance Rs.100 in Subsidiary and Provision for Investment Rs.100 in Holding company
Click here to login now
Similar Resolved Queries
- Exiting partner in partnership firm in gst portal
- CLOSING STOCK QUERY
- Rent claimed on building given on permissive possession basis
- Can a single LLP in India legally operate multiple unrelated businesses (Travel, Cloud Kitchen, Ecom
- Taxability of credit in canara bank ET & T section (NRO)
- CASH GIFT FROM BLOOD RELATIVE
- TDS offline utility
- Due Date Clarity
- Loss of interest in PF transfer from EPFO to Trust
- IT returns for fresh job holders
- Account freezed for Ineligible ITC Scrutiny for GST Annual Return
- TDS on property - Form 141 query
- Seeking Advice: High Tax Shortfall on Job Switch + Let-Out House Property Loss in FY 2025-26
- Housing Society-ITR5
- TDS on Rent received on redevelopment of building
- Indian IT Portal issue in computing tax as per UK-India DTAA
- Capital Gains on sale of residential flat
- Upload Level ValidationITR3Category of Defect B/D
- PF Taxable Income
- Clarification on Tax Audit Applicability and Reporting of F&O Transactions in ITR-3
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
CAclubindia
