LIVE GST Certification Course by CA Arun Chhajer begins 27th April. Register Now!!

AS 21- Consolidation of Balance Sheets

Vedant Khanna (374 Points)

25 December 2018

Why cant minority interest be negative?
Why cant we show it on the asset side?

Reply
Follow
Share

2 Replies

kinjal parikh (7 Points)
Replied 26 December 2018

Para 26 of AS 21 states losses incurred by minority shall be adjusted against minority if losses exceed minority then should be adjusted against majority

1 Like

Vinod lalwani (28 Points)
Replied 26 December 2018

Logic is that consolidate Financial statements are prepared by Holding company, if there is loss it means that holding company is not responsible to make it good for minority, then why it will be shown in CFS which includes investor own balance sheet plus its stake in subsidiary but not minority. But if it is 100% subsidiary then it is will be different situation. Hope made clear.

1 Like