Harish (CS Executive) (386 Points)
17 November 2009Subsidiary limited issued one equity shae for every three shares held, out of its general reserve. What will be the effect if, entry has been made on the books of holding ltd. for the receipt of these bonus shares and if, no entry has been made on the books in the books of holding ltd, while preparing consolidated finanacial statement?
Thanks in advance
Sandeep Pandey
(CA FINAL)
(1306 Points)
Replied 18 November 2009
U want to know what will be effect if holding company didnt pass any entry. The effect will be as follows....................................
1) The balance sheet of subsiciary company can not be consolited then if it will be consolidated it will not tally ............and it will not show True & Fair view....................
2) No effect will be there if bonus share entry is pass in the books of Holding company..........................
CAclubindia
