Group accounts, Financial Accounting

Group Accounts

A company can have investments in other companies in the form of: ordinary shares, preference shares and loan stock. The investment in ordinary shares leads to ownership and therefore requires further consideration. The investment in the ordinary shares can be summarized diagrammatically as follows;

1731_gorup accounts.jpg


1. Company A is referred to as a subsidiary company and is accounted as per the requirements of 1AS 27 “ subsidiary company and separate financial statements.”

2. Company B is a jointly controlled entity and is accounted for according to the requirements of  1AS  31 “joint ventures”.

3. Company C is an Associate company and is accounted for as per requirements of 1AS/28 “Associate companies”.

4. Company D is a pure investment accounted for as per requirements of 1AS 32 and 39 “financial instruments.
Jointly controlled entities and pure investments are beyond scope.

Posted Date: 12/12/2012 2:14:28 AM | Location : United States

Related Discussions:- Group accounts, Assignment Help, Ask Question on Group accounts, Get Answer, Expert's Help, Group accounts Discussions

Write discussion on Group accounts
Your posts are moderated
Related Questions
Profitability Ratios - These ratios include the Gross profit Margin, Net profit Margin, Operating Margin, Return on Equity (ROE), and Return on Total Assets. These ratios helps t

Illustration of consolidated balance sheet H Ltd owned S Ltd since the date of incorporation of S Ltd. The balance sheets of the two  companies as at 31 December 20X2 is as fo

Concept  of Financial statements  Financial statements portray the financial effect of transactions and events by grouping them into classes broadly called elements. A complete

The New York Jets have decided to go public and are offering new shares for $40. Since the Jets want to build a new stadium, the firm will retain all earnings and will not issue an

Q. What is Materiality? Materiality - Magnitude of an omission or misstatements of ACCOUNTING information that, in the light of surrounding circumstances, makes it probable tha

The Caltor Company gathered the following condensed data for the Year Ended December 31, 2010. Cost of goods sold $ 710,000 Net sales 1,279,000 Administrative expenses 239,000 I

For this question you will use the dataset "murder.xls", which includes: • rate = Murder rate per 100,000 • convictions = Number of convictions divided by number of murders • execu

When Lydia started her vending machine business, she instituted flexible budgeting for the first few months of operations. Her first monthly budget numbers were these: Cost of g

Q. What do you mean by earnings per share? Anti-dilution - Condition which may increase computation of EARNINGS PER SHARE (EPS)or decrease loss per share solely due to the incl