CA Atul Singhal (prop) (450 Points)

16 July 2010  

pls anybody solve the following technical problem:

A ltd is the 100% subsidiary of B Ltd from the date of its incorporation.

during the year new shares are issued to parent co. at premium.

what is the treatment of premium?

whether it shall set-off/ eliminate with investment.


or it shall be shown in consolidated balance sheet as share premium and goodwill is to be shown at asset side equal to the amount of share premium.