Consolidation of financial statements
This query is : Resolved
Gopal Sharma
(Querist)
28 November 2015
Hi,
I have a query in consolidation of financial statements. These pertain to AS 21.
Facts:
H (Holding Co.) has acquired 100% shares in S (Subsidiary Co.). At the time of purchase, the pre-acquisition net worth of the company was negative (Say Assets minus Liability was INR -400). H however paid Rs 10 (equivialnt to share capital of S)to acquire the 100% holding.
Query:
What should be recognised as goodwill amount in CFS. Whether INR 10 or INR 410?
Please provide relevant supporting or logic for the same.
I have a query in consolidation of financial statements. These pertain to AS 21.
Facts:
H (Holding Co.) has acquired 100% shares in S (Subsidiary Co.). At the time of purchase, the pre-acquisition net worth of the company was negative (Say Assets minus Liability was INR -400). H however paid Rs 10 (equivialnt to share capital of S)to acquire the 100% holding.
Query:
What should be recognised as goodwill amount in CFS. Whether INR 10 or INR 410?
Please provide relevant supporting or logic for the same.
29 November 2015
Dr gw 410
Cr net liability 400
Cr bank 10
Net liability 400 to be accounted by debiting the respective assets and liabilities
Cr net liability 400
Cr bank 10
Net liability 400 to be accounted by debiting the respective assets and liabilities
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