Consolidation of Balance Sheet

This query is : Resolved

Anil Chavan (Querist)
Follow

15 February 2008 How to consolidate the Balance sheet? And what is eleminated entries?
If our one unit is in India & another one is in US. Then how do I consolidate the Balance sheet? There is differance in currancy. Means while the consolidation the cost of $ (Dollar) increases or decreases as compare to the date on which the assets are purchased.

Can anybody help me out.

jegannath G

jegannath G (Expert)
Follow

15 February 2008 all the balance sheet items of the US unit should be converted at the closing rate of the balance sheet & all the profit & loss account items are to be converted at the average rate for the year.

All the items are to be added by line by line & the inter unit transfers / income / expenses are to be eliminated.

all the exchange fluctuations are to treated as foreign exchange fluctuation reserve account under the balance sheet - Reserves & Surplus.

This is how consolidation is all about.

Please read AS 21 for the details

Anil Chavan

Anil Chavan (Querist)
Follow

15 February 2008 Could you please tell me what is AS 21?
Please

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Similar Resolved Queries

Unanswered Queries

Popular
Recent

Trending Online Classes

Direct Tax Laws & International Taxation May 26,Sept 26 & Jan 27

CA Arvind Tuli

Enroll Now
Audit Fast Track Recorded Batch For May 26,Sept 26 & Jan 27

CA Aarti Lahoti

Enroll Now
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English

CA Bhanwar Borana & CA Shubham Keswani

Enroll Now

view all classess

Meet our CAclubindia PRO Members

Rubal Singhal

Ravi Varshney

Shivchandra Jakhotia

DHANASHRI KARMARKAR

Sneh Choraria

Subscribe Now

Consolidation of Balance Sheet

Similar Resolved Queries

Trending Online Classes

Meet our CAclubindia PRO Members

Quick Links

Browse by Category

Latest Job Openings

Accountant

CA Final

GST CONSULTANCY

Senior Executive

Manager- Finance and Compliance

GST CONSULTANT