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

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
Featured 03 October 2026
Accountant

A P Lodha and Associates

Jalna

B.Com

View Details
Company
10 October 2026
Accounts Associate Level 1

Abic and Mani Chartered Accountants

Kottayam

B.Com

View Details
Company
19 September 2026
Finance Manager

Mugdha Art Studio

Hyderabad

CA

View Details
Company
ARTICLESHIP 08 October 2026
ARTICLE TRAINEE

S.B.G. & CO. CHARTERED ACCOUNTANTS

New Delhi

CA Inter

View Details
Company
12 October 2026
AUDIT , ACCOUNTS AND TAXATION

KDSS

New Delhi

B.Com

View Details
Company
14 October 2026
Asst. Manager/Dy Manager (Costing)

manufacturing

Pune

CMA

View Details
Company
ARTICLESHIP 28 September 2026
Junior Accountant

J S P M & Associates LLP

Pune

B.Com

View Details
Company
20 September 2026
Semi Qualified CA

Navin & Associates

Mumbai

CA Inter

View Details