Archive | Holding Companies

Holding Company: Advantages and Disadvantages | Accounting

In this article we will discuss about the advantages and disadvantages of holding company. The advantages of holding company are in brief: (1) A holding company is a legal personality and it is very easy to form a holding company because we simply have to purchase the controlling interest of other companies. (2) Each member of the group has to [...]

By |2017-02-06T20:58:58+00:00February 6, 2017|Holding Companies|Comments Off on Holding Company: Advantages and Disadvantages | Accounting

Holding Companies: Problems and Solutions | Accounting

Here is a compilation of top nine problems on holding companies with its relevant solutions. Problem 1 (Wholly Owned Subsidiary): Note: Investment which is made by the Holding Company in the form of shares of subsidiary company is replaced by the subsidiary company's assets and liabilities. Problem 2 (Goodwill): The following are the Balance Sheet of H and S as [...]

By |2017-02-06T20:58:57+00:00February 6, 2017|Holding Companies|Comments Off on Holding Companies: Problems and Solutions | Accounting

Associated Companies in Consolidated Financial Statements

The Institute of Chartered Accountants of India issued Accounting Standard 23 on 'Accounting for Investments in Associates in Consolidated Financial Statement' effective in respect of accounting periods commencing on or after 1.4.2002. The accounting standard sets out principles and procedures on recognising, in the consolidated financial statements the effect of investment in associates on the financial positions and operating results [...]

By |2016-06-28T10:12:42+00:00June 28, 2016|Holding Companies|Comments Off on Associated Companies in Consolidated Financial Statements
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