Holding company with a subsidiary and a sub-subsidiary, Financial Accounting

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Holding company with a subsidiary and a sub-subsidiary

Where the subsidiary company has another subsidiary company, then that subsidiary is referred to as a sub-subsidiary company of the holding company. This can be shown as follows:

229_holding subsidiary.jpg



The preparation of the consolidated balance sheet again remains the same as before because the process involves adding the assets and liabilities of the subsidiary and sub subsidiary to those of the holding company.


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