Amalgamation- Inter company holdings

 Can any one briefly explain inter co. holdings and corresponding accounting treatment? If you can, explain with the help of a table. thanks in advance and best of luck to friends who attent in Nov exams

Replies (1)
Originally posted by : mahesh 

inter company holdings refer to having investments of transferor (transferee) in transferee (transferor) company .

important points to be noted before preparing financial statements is that

  • calculation of net worth  assets with out investments as the value of investments are based on other company share value
  • while calculating purchase consideration we need to deduct the value of share holdings in transferee company (TAKE OFF)

 

 

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