A company has 5 subsidiaries.It diluted its 100% share in a wholly owned subsidiary on 23/09/2011. now while consolidating the P&L of the diluted subsidiary will the intercompany transactions between the holding co. and diluted subsidiary will be nullified/cancelled? if yes what effect will be taken on reserve and surplus in balance sheet?
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Consolidated financial statement
Replies (3)
Unrealised profits will be adjusted to the group reserves i.e., eliminated from it...in the balance sheet...
what about purchase-sale transactions with the diluted subsidiary..
will they be elliminated?
I reckon it should be eliminated but im not sure...wait for others to reply..
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