Group Companies Consolidation of Balance sheet

Define group structure first, NCI. Through this you will know what kind of a business combination it is. 

If a,b,c,d are subsidiaries with voting rights and control given to parent, then you will consolidate them.

If parent did not invest directly on a,b,c,d, then, consolidate subsidiary investment+parent investments in assets.

if there is no interest in a,b,c,d by parent, then there is no NCI profits to parent. You can disclose the details. 

There is a small fallacy in cfs because it doesn’t mention how to account subsidiary in their separate financial statements. Eg., subsidiary equity is 100₹ and parent purchased 90₹ worth then three transactions will be like

Investment in subsidiary a/c

To Bank a/c

And how many shares you acquired will be updated in equity 

Investment in subsidiary a/c

To Equity capital a/c

this will sort out the dual aspect. If you understood, subsidiary will consolidate only their standalone statements. Parent does not consolidate, consolidates statements of subsidiary. Now what is the treatment of acquiring a subsidiary in standalone statements? No text book defined that, and MCA, ICAI defines that because they don’t like students to learn consolidation with ease so that cheap people can become top level with thi knowledge. 

If you look at AS 1 presentation standard, it doesn’t mention subsidiary purchase transaction but the equity method for associates is published. Cheap material and that is why there is no recognition for a ca because of alcoholics and mentally ill people writing text books.

The second entry is not correct. Sorry. It is not for issuing/ raising capital. Sry.

Lol I meant that is for issuing equity to raise capital. Typo. 

Thanks for your understanding, etc also meant e,f,c instead of a,b,c,d. My observations are for subsidiary’s subsidiaries. 

https://www.mca.gov.in/Ministry/notification/pdf/AS_21.pdf

This is the best I can help yourself u today. Para 13 tells you the cost consolidation procedure. Assets must be added later ne by line

1) D has 3 wholly-owned subsidiary who hold 30% each in P, but D has no holding in P. How should P be consolidated?

D exercise control over more than 50% of total voting power of P, indirectly through D’s wholly-owned subsidiaries. Therefore, irrespective of whether or not A exercises any direct control over the operations of P, D would have to consolidate P directly as a subsidiary, in preparing its CFS.