Menu
Holding doubts
In holding accounts, what is the relevance of timing adjustment? It is included while preparing analysis of profits. Please help.
Replies (12)
| Originally posted by : renuka | ||
 |
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...
Recent Topics :
- GSTR 9 LATE FEE
- Best Online Mock Test Series for CA Inter January
- COST OF IMPROVEMENT
- Pillows and Mattresses
- GST Applicability for Reg. / Un-Reg. Indian custom
- Amended GST Act & Rules
- FAST DS 2026 MAIL QUERY
- Does Anyone need CA Foundation books of May2026 at
- Last day for ITR-U for AY 2023-2024 (FY 2022-2023)
- Sale of shares in indian company by a non resident
Related Topics :
CAclubindia
