Treatment of interest on loan from holding company in consolidated Financial statement

In consolidated financial statements, the interest paid to a holding company by a subsidiary is treated as an intercompany transaction and is eliminated in the consolidation process. This means that the interest expense recorded in the subsidiary's books is removed from the subsidiary's results and is not included in the consolidated results.

The capitalization of interest as borrowing cost in the subsidiary's books is also eliminated in the consolidation process. This means that the capitalized interest amount is removed from the subsidiary's assets and is not included in the consolidated balance sheet.

What will be the impact of depreciation in CFS? 

All assets capitalised are consolidated 

P+S not unless its an intragroup transaction. Only loans and interest payablra to outsiders must be recognised.

Eg. Youve had a recent self constructing asset and incremental costs capitalised from it. Its consolidated as assets. Anything between groups must be cancelled.

CFS is not mandatory in AS but in Indas.

I have more intragroup transactions simplified on my blogspot on the profile page.