Tag Archives | Holding Companies

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

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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