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Can a subsidiary have two parents at the same time ?

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Dipjyoti Majumdar

CA in service & CS. dipmaj@

3485 Points Joined June 2011

Friends & Seniors

Can a subsidiary have two holding companies ? One by virtue of holding more than 50% share capital and other owing to control of composition of board of directors.

Please find attched a write up from Students' Guide to Accounting Standards by author FCA D.S.Rawat.

Regards

Dipjyoti

Replies (1)

CA Raj Doshi

Practising CA

8944 Points Joined December 2013

Yes. It is possible. In this case , as per AS ,both will consolidate and give disclosure of consolidation by other company. However, as per Ind AS , company have economic interest shall consolidate. ( company having only financial interest will not consolidate ).