Consolidation of associates

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

08 December 2017 Process of consolidation of Asssociates

i) First year Associated company incurred losses. let 30,00,000
and
ii) Second year company incurred profits. let 70,00,000
iii) there no concept of pre acquisition profits since investment (let 3,00,00,000) made immediately after incorporation.

How Consolidation do for 2nd year

Sandeep Garg

Sandeep Garg (Expert)
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08 December 2017 for associated equity pickup is done i.e. proportionate profit for the period is taken by the holding co.