Subsidiary expense booking

a subsidiary company is in process of obtaining it's operation license, can it book it's expense in holding company till starting it's operations?
what is the correct treatment in both books?
Replies (3)
Quick Summary
This discussion explores whether a subsidiary company can book its expenses in the holding company's accounts before obtaining its operating license. The consensus is that a subsidiary, having its own legal identity, cannot book these pre-operating expenses in the holding company. Such costs are considered pre-operational for the subsidiary itself until its license is secured and operations commence.

Since ever company have separate identity of their own it cannot be booked in holding company accounts
Company has not obtained its operation license, so how it can booked operating expenses before obtaining it's license

They are pre operating expenses

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