Pre-acquisition dividend-urgent

Response to Querry 1: Dividend out of pre acquisition profits credited to P&L of holding Company is reduced while calculating the consolidated reserves and surplus because such amount is taken in to consideration in calculating goodwill/Capital Reserves in the consolidated financials.

Response to Querry 2: The dividend declared by the holding company is shown in the consolidated financial statements and no divided declared by subsidiary is shown in such consolidated financials. The dividend portion pertaining to holding company out of the divided of subsidiary is nullified as the holding company takes the entire amount of Profit/Loss for the year in consolidated financials and the amount pertaining to minority interest is shown seperately in the financials.

Hope this satisfies your querry.

Thanks a lot for answering my doubts.  Query 2 is still unclear.  Please do something

Reply to Querry 2: In the Consolidated Balance Sheet, the share of the holding Company of Post Acquisition Profits of subsidiary is shown Retained Earnings and that belonging to other shareholders is shown under Monority interest. This portion of minority interest also includes the amount minority share of dividend proposed by the subsidiary company. Therefore, in the Consolidated Balance Sheet, dividend proposed by the holding company is included.

In your querry, you have mentioned that consolidated balance sheet includes dividend proposed by the subsidiary company only. However, it should be the dividend proposed by the holding company

please explain what is pre acquisition didvidend ? CA-IPCC