Corporate Accounting

12

Holding Company Accounts

LEARNING OBJECTIVES

After studying this chapter you should be able to:

1. Define holding company and subsidiary company.

2. Understand the legal requirements relating to presentation of accounts by a holding company.

3. Understand the requirements of Schedule VI.

4. Explain Consolidated financial statements.

5. Prepare Consolidated balance sheet of a holding company and its subsidiaries.

6. Understand the important factors and their accounting treatment such as: (i) elimination of investment account; (ii) minority interest; (iii) cost of control or goodwill; (iv) revenue profits or post-acquisition profits; (v) revenue losses or post-acquisition losses; (vi) capital profit & losses or pre-acquisition profits and losses; (vii) ...