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Consolidation of Financials Accounts

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ketna sharma

6 Points Posted on 02 November 2021

one shareholder holding 30% shares in two companies whether those 2 companies accounts are required to be consolidated

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Quick Summary

This discussion clarifies whether financial accounts of two companies require consolidation when a single shareholder owns 30% of both. The consensus is no, as this ownership stake does not grant control (over 50% shareholding) in either company. Therefore, they are not considered related parties for consolidation purposes.

CA Aakarsh Jain

10436 Points Posted on 02 November 2021

No they don't require to be consolidated. Even they are not considered as a relative parties to each other because that shareholder is not having control in any of them that means not holding more that 50% share in any of them.

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