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 [...]
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 [...]
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 [...]