Situation: Company A directly holds 47% in company B and 60 % in Company C.
Company C holds 4% in Company B.
Question- Is A required to consolidate B in its books as per AS 21.
( that is, Does A directly (47%) and indirectly holds more than 50 % of the nomimnal value of equity of B. That is will the holding be 47%+4%= 51% OR, will it be 47%+ (60% of 4%= 2.40%) = 49.40%)
(assume it is purely based on shareholding and no control over the Board of Directors is evidenced)
Please reply
CAclubindia
