Doubt in consolidated financial ststements
This query is : Resolved
Guest
Guest
(Querist)
08 February 2013
please help me...
i have doubt in intra group transactions between holding and subsidiary:
relating to stock......downstream and upstream transactions....
i studied that 100% of unrealised profit on downstream transaction should be deducted from holding company's share of profit WHILE unrealised profit on upstream transaction should be reduced from the share of holding as well as MINORITY INTEREST on pro rata basis
.
.
.
.
NOW THE DOUBT IS ....WHETHER THE AFORESAID TREATMENT IS CORRECT OR NOT....IF NOT TELL ME THE CORRECT TREATMENT
.
.
.
SOLUTION PROVIDED ICAI IN PRACTICE MANUAL DO NOT DISTINGUISH UP / DOWN STREAM .....IT JUST DIRECTLY DEDUCTS 100% OF UNREALISED PROFITS FROM HOLDING COMPANY'S PROFIT EVEN IN CASE OF UPSTREAM ! ! !
PLEASE KNOWLEDGEABLE PERSONS HELP
i have doubt in intra group transactions between holding and subsidiary:
relating to stock......downstream and upstream transactions....
i studied that 100% of unrealised profit on downstream transaction should be deducted from holding company's share of profit WHILE unrealised profit on upstream transaction should be reduced from the share of holding as well as MINORITY INTEREST on pro rata basis
.
.
.
.
NOW THE DOUBT IS ....WHETHER THE AFORESAID TREATMENT IS CORRECT OR NOT....IF NOT TELL ME THE CORRECT TREATMENT
.
.
.
SOLUTION PROVIDED ICAI IN PRACTICE MANUAL DO NOT DISTINGUISH UP / DOWN STREAM .....IT JUST DIRECTLY DEDUCTS 100% OF UNREALISED PROFITS FROM HOLDING COMPANY'S PROFIT EVEN IN CASE OF UPSTREAM ! ! !
PLEASE KNOWLEDGEABLE PERSONS HELP
13 February 2013
irrepective of downstreaming or upstreaming, intercompany profist are to be eliminated in full.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- GST REFUND ISSUE ON PURCHASE OF PLANT AND MACHINERY
- WRONG GSTR7 ENTRIES ACCEPTED ERRONEOUSLY
- Expert Help Required for TDS Refund 100000 Through TRACES – AY 2022–23
- IMPORT PURCHASE ENTRY PASSED IN BOOKS OF ACCOUNT
- FAST DS 26 Undisclosed Foreign Asset Disclosure Scheme 2026
- Regime change
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- FAST-DS 2026 Under Tax Law - No recourse or support for person declaring via this scheme?
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
