Minority interest should be presented in the consolidated balance sheet
Minority of the subsidiary is entitled to
In consolidation of accounts of holding and subsidiary company is eliminated in full.
In consolidated balance sheet, the share of the outsiders in the net assets of the subsidiary must be shown as
Provision for Tax made by the subsidiary company will appear in the consolidated balance sheet as an item of
Identity which of the statements are correct.
An enterprise can influence the significant economic decision making by many ways like:
(i) Representation on the board of directors or governing body of the investee.
(ii) Participation in policy-making processes.
(iii) Interchange of managerial personnel.
(iv) Provision of essential technical information.
A Ltd. acquired 10% stake of B Ltd. on April 01 and further 15% on October 01 of the same year. Other information is as follows:
Cost of Investment for 10% ` 1,00,000 and for 15% ` 1,55,000
Net asset on April 01 ` 8,50,000 and on October 01 ` 10,00,000.
What is the amount of goodwill or capital reserve arising on significant influence?
Capital Reserve = ` 20,000. 4. A Ltd. acquired 10% stake of B Ltd. on April 01 and further 15% on October 01 during the same year. Other information is as follow:
Cost of Investment for 10% ` 1,00,000 and for 15% ` 1,45,000
Dividend paid by subsidiary to its parent, out of capital profits, should be credited by the parent company in its
If there remains any unrealized profit in the inventory, of any of the Group Company,