Tag Archives | Holding Companies

Foreign Subsidiaries (With Illustrations) | Accounting

Foreign subsidiary companies should be consolidated along with other subsidiary companies in the usual manner. This will be possible only if the trial balance of the foreign subsidiary is first converted into 'home' currency. The rules for conversion are the same as for foreign branches. There may, however, be subsidiary companies in some countries where the political or economic conditions [...]

By |2016-06-28T10:12:42+00:00June 28, 2016|Foreign Subsidiaries|Comments Off on Foreign Subsidiaries (With Illustrations) | Accounting

Inter-Company Holdings in Final Accounts | Holding Companies

In India, a subsidiary company is not allowed to acquire shares in its holding company. But if the subsidiary company had acquired shares in the holding company before it became the subsidiary or before the commencement of the Companies Act, 1956, the company can continue to hold the shares [section 42 (3)]. However, the subsidiary company will not be able [...]

By |2016-06-28T10:12:42+00:00June 28, 2016|Holding Companies|Comments Off on Inter-Company Holdings in Final Accounts | 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)
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