22 April 2013
A ltd has 60% Shares in B Ltd which inturn has 20% shares in C Ltd. Also, A Ltd hold 14% shares in C Ltd. As per AS 18, A ltd has substantial control over the financial or/ and operating working B Ltd and B Ltd has significane influence on the financial or/ and operating working of C Ltd. Also, its clear that A Ltd holds significant share in C ltd, directly as well as indirectly. My question is how much do we consider A Ltd's hold? 14% + 12% (20% Of B Lts's shares)= 26%, signifying a significant influence over the business or 14% + 60% = 76%, signifying control over the business.
CAclubindia
