Difference-amalgn & consolidation of financial sttmts problem

1. Amalgation adjustments affects standalone fianncials of both the companies but consolidation is just reporting requirement of holding company i.e. it never affects standalone fianancials of both companies.
2. Amalgamation is takeover of business along with shares Consoidation is only takeover of shares by holding company. Therefore holding company record investment in its books rather to adjust assets & liabilities of subsidiary.

In consolidation, if there are both pre-acquisition and post acquisition dividend received by Holding company from subsidiary how should we treat them in the books of Holding and subsidiary companies.

e.g if A Ltd. acquires 54,000 shares of B ltd(90%), pre-acquision dividend is Rs.18,000 and Post acquisition dividend is Rs.4,500, how these dividends should be treated in Balance sheet of Consolidated Financial Statements.

Regards,

Prachi

In case of above problem, if holding company has credited its share of pre-acquisition dividend to its P&L Account, what correction do we need to make while preparing Consolidated financial statement.