Tag Archives | Pre-acquisition and Post Acquisition Profits

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 Vinita B|2016-06-28T10:12:42+00:00June 28, 2016|Holding Companies|Comments Off

Dividends from Subsidiary Company

In this article we will discuss about the Dividend from Subsidiary Company Pre-acquisition and Post Acquisition Profits along with Solved Illustrations. Dividend received by the holding company from its subsidiary out of pre-acquisition profits is treated as capital receipt; the journal entry for its record being as follows:— Dividend received from the subsidiary company out of pre-acquisition profits. Its effect [...]

By Vinita B|2016-06-28T10:12:42+00:00June 28, 2016|Holding Companies|Comments Off

This website uses cookies and third party services. OK