Prachi Srivastava (Finance) (368 Points)
09 December 2014Hi All,
I have done amalgamation problems and now doing Consolidation of Financial Statements problems.
Can anyone tell me what is the difference between these two problems. I find them very similar. Questions given and treatment done both look similar.
If anyone can ennumerate the basic difference in approach of solving these problems, it will help me a lot.
Thanks
Prachi.
rohit
(Student CA Final )
(117 Points)
Replied 09 December 2014
Prachi Srivastava
(Finance)
(368 Points)
Replied 09 December 2014
In consolidation, if there are both pre-acquisition and post acquisition dividend received by Holding company from subsidiary how should we treat them in the books of Holding and subsidiary companies.
e.g if A Ltd. acquires 54,000 shares of B ltd(90%), pre-acquision dividend is Rs.18,000 and Post acquisition dividend is Rs.4,500, how these dividends should be treated in Balance sheet of Consolidated Financial Statements.
Regards,
Prachi
RAVINA VATS
(STUDENT)
(69 Points)
Replied 09 December 2014
Prachi Srivastava
(Finance)
(368 Points)
Replied 10 December 2014
In case of above problem, if holding company has credited its share of pre-acquisition dividend to its P&L Account, what correction do we need to make while preparing Consolidated financial statement.
RAVINA VATS
(STUDENT)
(69 Points)
Replied 10 December 2014
CAclubindia
