Consolidation of investment

Hi,

Like to know the different methods available in Consolidation of Investment and calcuation of Non-controling Interest.

One of the scenario, in my current organization.

We have a Parent company P1000 and Subsidary companies S2000 and S2001

P1000 has invest different share percentages to develop the subsidary companies for ex

P1000 invest 56% on S2000

P1000 Invest 73% on S2001  etc..

 

P1000 is a listed company and subsidaries are not.

 

Now if i adopt a method for Consolidation of Investment it will be Equity method or Purchase method.

 

your help on this will be highly appreciated.

 

thanks and regards

Praveen.J

Replies (1)

Dear Praveen

Under IFRS, after 1Jan 2010, the acqusition method is applied for busines combinations and before 1 Jan 2010, purchase method is applied. The relationship of subsidiaries exists only when the controlling power lies with the parent company which is  not clear in your question.

Equity method is applied in case of associate and joint venture which implies presence of significant influence or joint control.

Please let me know what exactly u want to ask.

 

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
09 September 2026
SENIOR AUDITOR & ACCOUNTS MANAGER

Anupam Parashar & Co.

Ghaziabad

CA Final

View Details
Company
ARTICLESHIP 29 August 2026
Article Assistant

RRPM & ASSOCIATES LLP

Chennai

CA Inter

View Details
Company
25 August 2026
Senior Accountant

MG Associates

New Delhi

CA Inter

View Details
Company
08 September 2026
Semi-Qualified Assitant

Subrahmanyam & Sivudu CA Firm

Hyderabad

CA Inter

View Details
Company
ARTICLESHIP 24 August 2026
Chartered Accountant Articles

Rohit KC Jain & Co

New Delhi

CA Inter

View Details
Company
Featured 11 September 2026
Audit Executive

RBSM Corporate Advisors Private Limited

Pune

CA

View Details
Company
ARTICLESHIP 25 August 2026
CA Article's

Saini Pati Shah & Co LLP

Mumbai

CA Inter

View Details
Company
18 September 2026
Accounts & Finance Specialist

ULTRA CHEMICAL WORKS

Thane

CA Final

View Details