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In holding accounts, what is the relevance of timing adjustment? It is included while preparing analysis of profits. Please help.
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| Originally posted by : renuka | ||
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In holding accounts, what is the relevance of timing adjustment? It is included while preparing analysis of profits. Please help. |  |
Time adjustment is made to arrive at the profits as on date of acquisition so as to calculate pre acqusition and post acquisition profits.
Got it. Thanks a lot :)
What is rectification of dividend? Why do we deduct it from investments to calculate cost of control?
We incorporate holding & subsidiary company trial balances in a consolidation ledger. This will now have dividend income from subsidiary company accounted for by holding company, as a credit balance...
This will be zeroized by crediting the same to the cost of control account (created in the consolidation ledger, with 1) the holding company's investment cost debit balance less. 2) the credit balance of holding company's share of subsidiary company's equity share capital and 3) credit/debit balance of profits/losses accrued before the date of holding company's acquisition of shares in subsidiary company)...
If the net balance is debit in cost of control, the credit for holding company's dividend income will become a deduction; but, if the net balance is credit in cost of control, the credit for dividend income will become an addition to cost of investments...
If the net balance is debit in cost of control, the credit for holding company's dividend income will become a deduction; but, if the net balance is credit in cost of control, the credit for dividend income will become an addition to cost of investments...
If the net balance is debit in cost of control, the credit for holding company's dividend income will become a deduction; but, if the net balance is credit in cost of control, the credit for dividend income will become an addition to cost of investments...
If the net balance is debit in cost of control, the credit for holding company's dividend income will become a deduction; but, if the net balance is credit in cost of control, the credit for dividend income will become an addition to cost of investments...
If the net balance is debit in cost of control, the credit for holding company's dividend income will become a deduction; but, if the net balance is credit in cost of control, the credit for dividend income will become an addition to cost of investments...
If the net balance is debit in cost of control, the credit for holding company's dividend income will become a deduction; but, if the net balance is credit in cost of control, the credit for dividend income will become an addition to cost of investments...
If the net balance is debit in cost of control, the credit for holding company's dividend income will become a deduction; but, if the net balance is credit in cost of control, the credit for dividend income will become an addition to cost of investments...
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