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?
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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.