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Inter Co holding

Vivek Harlalka (Article Assistant) (40 Points)

26 November 2017

If old Co is holding shares in new Co. Then while discharging PC for amalgamation to old Co, the investments are to be cancelled at book value or intrinsic value. Further while calculating goodwill the query is the same whether they will come at Book value or IV

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3 Replies

Rohit jain (Chartered Accountant / Company Secretary) (221 Points)
Replied 26 November 2017

intrinsic value

Vivek Harlalka (Article Assistant) (40 Points)
Replied 26 November 2017

So while calculating goodwill and also at discharging PC the I investments will be taken at IV. book value won't be used??

upendra kumar sahoo (ca) (2 Points)
Replied 26 November 2017

It's depend how the agreement are made in between the both of the company and which assets are to be considered at BV or IV ,based on that PC and Goodwill will be calculate.