Consolidation of Accounts.

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H.R.Sampath Kumar (Querist)
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04 July 2008 In Consolidation, minority interet is shown in th P & L Account and also in the Balance Sheet. Is this A/c a regular ledger account ( Lizbility) so that in the next year, th profit /loss attributable to Minority interest is added to /deducted from the opening Balance?

CA Anand Sarda

CA Anand Sarda (Expert)
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04 July 2008 The accounts of holding and subsidiary co are separate. the accounts will not be affected in any way. only for preparing consolidation statements we make such changes. Consolidated Financial statements are separate statement. Nothing of which will be incorporated in the books of accounts of either co.