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Please help me. . . .(as 21)

412 views 2 replies

Sarath.M.G

Student

63 Points Posted on 07 April 2014

Can any one help me to clarify the following 2 doubts regarding AS 21 (1) what is the treatment of revaluation reserve existing in the balance sheet of subsidiary co while preparing consolidated B/S? (2) accounting year:1/4/2012 to 31/3/2013 on 1/5/2012 H Ltd acquired 30% shares of S Ltd.on the same date S Ltd revalued their building upward by Rs.50000.but this adjustment not yet been recorded.on 1/6/2012 H Ltd acqured another 21% shares of S Ltd.on this date H Ltd & S Ltd are holding and subsidairy companies.on the same date S Ltd revalued their Plant upward by Rs.30000.this adjustment is not yet been record ed What is the treatment for the above two revaluations while preparing consolidated B/S?there is any change in the treatment if the 1st revaluation is recorded and revaluation reserve is shown in the B/S of S Ltd?

Replies (2)

CA Saroj Kumar

Keen to learn something new every moment

2588 Points Posted on 08 April 2014

While u prepare Ananlysis of profit consider all reserve separtely...and and revaluation is done on the date of acquistio it shall be treated as fres revaluation and accordingly to be affected either in Capital Profit and Revenue profit...and Additional deprecitaion shall also be considered for the same and to be charged againsed the revenue profit....