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
Q. Example of Dividend valuation model? Dividend valuation model D 1 /P +g= 24(1.06)/ 428+ 0·06 = 0·119 or 11·9% An incorrect formula for the dividend evaluation model was u

The maximum possible loss method Under this method, a table is set up to compute the amounts payable to each partner. The results of the computation may be then posted into the

What is the sales price of common stock when it was issued?

ACCUMULATION ACCOUNTS FOR MINORS   (a) Income accumulations : When property is left in trust for minors, the income earned for the period will be divided equally or according t

What is the net present value of a project that requires a net investment of $76,000 and produces net cash flows of $22,000 per year for 7 years? Assume the cost of capital is 15 p

On January 1, 2013, NewTune Company exchanges 15,000 shares of its common stock for all of the outstanding shares of On-the-Go, Inc. Each NewTune''s shares has a $4 par value and a

Dillings Ltd is a wholesaler and distributor of catering of office equipment. The following list of balances was extracted from its books at 31 March 2004: The following ad

Problem on balance sheet: At the beginning of 20X2, Dahl Ltd. acquired 8% of the outstanding common shares of Tippy Ltd. for $400,000. This amounted to 80,000 shares.  At th

Dissolution If the winding up continues for more than a year, the liquidator must file progress reports with the registrar at such intervals as the court may prescribe s.333. W

information for the year ended December 31, 2010: Sales 110,000 Direct materials used 20,800 Indirect production costs-fixed 10,400 Indirect production costs-variable 6,600 Direct