Investment in subsidiary written off

Dipjyoti Majumdar (CA in service & CS. dipmaj@ rediffmail.com )   (3468 Points)

29 September 2012  

Friends

 

H Ltd is the holding company of S Ltd. S Ltd is incurring losses. The auditor wants to make provision for diminution in value of investments of H Ltd in S Ltd in the books of H Ltd. Then, can consolidation be done or is it mandatory to present consolidated accounts for H Ltd.

 

If the investment in subsidiary is written off, can consolidation be done or is it mandatory.

 

Regards,