Hello Friends,
As per previous defination of Subsidiary co. while calculating Holding % we took %on "paid up equity share capital".
But now as per Co. act 2013 Defination of subsidiary: it states: Holding co which exercises or controls more than 50% of the " TOTAL SHARE CAPITAL"
So now if A B Equity capital
Eq capital 500,000 300,000
Pref sh capital 300,000 200,000
A Co. holds 200,000 Equity shares and 40,000 preference shares of B Co. than what will be the holding Ratio to be used in Calculation of Minority interest, Cost of control.
What will be the ratios to be used while calculating CONSOLIADTED FIN. ST. Questions in NOV 2014?
Thanking you
CAclubindia
