What are the Rules of 20% holding?

if a company holds more than 20% of share capital in any other comapny then it means that it hold significant influence and becomes Associate company for the investor company. Then AS 23 shall be applied.

Investment in seperate financial statements shall be treated as per AS 13. and for consolidated statements equity method under AS 23 shall be applied.

As per euity method any good will or capital reserve shall be calculated and disclosed under investments.