Dear members
while consolidating one of the clients financials i came across the following problem
A ltd hold 99.02% of B ltd out of which 49.09% was acquired on 30th september with securities premium of rs 1000 crore and rest 49.93% was acquired on 20th jannuary . while preparing the analysis of profit on respective dates(30th sep and 20th jan) which amount is to be treated as pre and post .
Dear Bhupender,
Please note the following (from the AS)
Dear saikiran,
i am not confused on the matter that when to treat it as subsidiary . i am concerned that i have to consolidate the financials of A ltd so i have to calculate the amount of capital reserve/ goodwill for this we require to prepare AOP . Now while preparing AOP( i am talking about as on 30 september ) whether i should consider the securities premium balance as pre acq or post acqusition for the 49.09 % share of profit of the holding
Since consolidated financial statements are presented from the date on which holding subsidiary relation exists, all the profits & reserves of 49.09% will be of pre acquisition.
Chirag N Shah & Associates
Mumbai
CA Inter
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BHUPINDER SHAH AND COMPANY
New Delhi
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SKAA & Associates
New Delhi
CA Inter
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Jawahar and Associates Chartered Accountants
Hyderabad
CA Inter
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