Consolidated financial statement

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

18 August 2011
Dear Sirs,

We recently acquired 100% equity a company and we paid consideration of Rs. 10.00 Crores to their shareholder and Share Capital of acquired company is 7.00 Crores. In holding company financial statements we are showing Rs.10.00 crores as Investments.

now we are preparing consolidated financial statements so can any body help me for treatment of investments in consolidated financial statements.

CA Pushpendra Gaur

CA Pushpendra Gaur (Expert)
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27 September 2011 There may also be the reserve and surplus in the company
if no reserve and surplus
Rs 3 crore will be shown as Goodwill as per AS 21
plz mention the nomenclature as Goodwill as per AS 21

CA Pushpendra Gaur

CA Pushpendra Gaur (Expert)
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27 September 2011 If there are reserve and surplus and miscellaneaous expenditure
The Goodwill/(Capital Reserve) wud be

RS 10 crore- Rs 7 Crore (share capital)-Reserve and surplus +miscellaneaous expenditure

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