Hi..
I have one Query of Loan Accounting.
Whether Holding Company can make DIRECT payment of subsidiary company liability related to imported machinery?
I would be grateful is you could throw some light on the situation by way of citing reference of Accounting Standards.
Menu
Loan accounting query
Replies (2)
Currently i have a same type of work experience i have conducted a audit of Power Company there was same situation where the company(Holding) is paying liability of subsidiary company hence it is possible that the holding comapny may pay the liability of subsidiary company and at a periodical interval the comapnies making IBA(Inter Branch Aadvice) for reconciliation of the same.
This is not a transaction of a company having a branch of itself. It is transaction between two seperate entities. i.e. a subsidiary & holding co have differnet identities.
If the holding co is making payment on behalf of its subsidiary, it can do so. But necesssary disclosures shud be made in the Asset Register of teh subsidiary company. Is there any specific reason for the holding co making payment for its subsidiary.
Recent Threads
- Schedule FA A3 csv Example
- RCM ITC reported in Table 4(4) instead of 4(3) in
- TDS on sale of property where consideration is Rs.
- Treatment of intraday profit and fno loss in,ITR
- Regarding Conveyance allowance
- HRA from one employer but not from the other
- Grandparents gifts Rs.5 lakhs to a grandchild - Wh
- AY2025-26 ITR-3 has been added now to the Common O
- Request for Advice on Housing Loan Tax Benefit Eli
- Contest Time barred ADT-02
Related Threads
CAclubindia
