Consolidation of financial statements

This query is : Resolved

Gopal Sharma (Querist)
Follow

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.

Kumar

Kumar (Expert)
Follow

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

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

mahendra zaveri

sachingurav

velichety.l.narasimharao

Mukund Thakur

shubham agrawal

Subscribe Now

Consolidation of financial statements

Similar Resolved Queries

Trending Online Classes

Meet our CAclubindia PRO Members

Quick Links

Browse by Category

Latest Job Openings

Manager- Finance and Compliance

CA Final

GST CONSULTANCY

GST CONSULTANT

Accountant

Senior Executive