Loan stock in subsidiary-group accounts , Financial Accounting

Loan stock in subsidiary

The holding company may also invest in the loan stock of the subsidiary company or part of the loan stock of the subsidiary company. The cost of the loan stock to the holding company will not be used to compute goodwill but instead should cancel out with the liability appearing in the subsidiary company such that in the consolidated balance sheet, only the loan stock held by 3rd parties in the group will appear.

Group loan stock will thus be given as follows: -

 

£

£

Loan stock appearing holding company balance sheet

 

x

Add:  Loan stock appearing in subsidiary company balance sheet

 

x

Less:  Loan stock of subsidiary company held b holding company

 

(x)

Group loan stock

 

x

Posted Date: 12/12/2012 2:37:54 AM | Location : United States







Related Discussions:- Loan stock in subsidiary-group accounts , Assignment Help, Ask Question on Loan stock in subsidiary-group accounts , Get Answer, Expert's Help, Loan stock in subsidiary-group accounts Discussions

Write discussion on Loan stock in subsidiary-group accounts
Your posts are moderated
Related Questions
EXPLIN THE PROCEDURE FOLLOWED IN GOVERMENT SYSTEM OF ACCOUNTING IN INDIA.

An individual is currently working 40 hours per week, earning $10 per hour.  He loses his job and successfully applies for unemployment insurance.  The insurance plan works as foll

Under this system all stock levels are reviewed after fixed time duration, depending upon the significance of the item. Imported items may need a shorter review cycle, while slow m

how should i treat items in the additional information

Promissory Note - Evidence of a DEBT with specific amount due and interest rate. Note may specify a maturity date or it may be payable on demand. Promissory note may or may not acc


A parent has had a controlling interest of 60% in its subsidiary for a number of years. Below are financial statement extracts of the two companies for the year ended 30 June 20

Realisation of assets 1. Divisible property : The ownership of the company's property does not vest in the liquidator (unless the court makes a vesting order: s.240); but

I need help on my accounting assignment

Surviving Spouse - This is a person whose wife or husband died during tax year. A surviving spouse can file a JOINT RETURN for the year in which death occurred. Additionally a join