Archive | Holding Companies

Consolidation of Profit and Loss Accounts (With Illustrations)

Apart from the usual items of gains, incomes, losses and expenses which will appear in the profit and loss accounts of both the holding and the subsidiary companies and which will therefore be aggregated, some adjustments will be required. The following are the most important: (1) The profit of the subsidiary company arising before the date of acquisition of shares [...]

By |2016-06-28T10:12:42+00:00June 28, 2016|Holding Companies|Comments Off on Consolidation of Profit and Loss Accounts (With Illustrations)

Bonus Shares out of Pre-acquisition and Post Acquisition Profits

Issue of bonus shares by the subsidiary company increases the number of shares held by the holding company without changing the cost of investment. While preparing a consolidated balance sheet, its treatment will differ depending upon the source from where the bonus shares have been issued by the subsidiary company. Bonus Shares out of Pre-acquisition Profits: If the subsidiary company [...]

By |2016-06-28T10:12:42+00:00June 28, 2016|Holding Companies|Comments Off on Bonus Shares out of Pre-acquisition and Post Acquisition Profits

Balance Sheets and Profit and Loss Accounts | Holding Companies

In England the holding company is required to present, in addition to its normal balance sheet, a consolidated balance sheet covering the holding company and its subsidiaries and a consolidated profit and loss account. In India, the law does not insist on consolidated accounts but there is no doubt that for a clear picture, it is desirable to present one [...]

By |2016-06-28T10:12:42+00:00June 28, 2016|Holding Companies|Comments Off on Balance Sheets and Profit and Loss Accounts | Holding Companies
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