Profits in subsidiary company-group accounts, Financial Accounting

Profits in subsidiary company

The remaining profits that belong to the holding company should be split between pre-acquisition profits and post acquisition profits.

The pre acquisition profits are the profits in the subsidiary company on the dare of acquisition and are thus used in computing goodwill.

The post acquisition profits relate to the period after acquisition and can thus be distributed or can be paid out to the shareholders of the holding company. They should thus form part of the group retained profits.

Posted Date: 12/12/2012 2:34:46 AM | Location : United States







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

Write discussion on Profits in subsidiary company-group accounts
Your posts are moderated
Related Questions
Q. Define Strong form efficiency? In robustly efficient market finance directors will be alert to the fact that market prices are an accurate reflection of their company's fina

Q. Define about SME FINANCE? SMEs contribute in a significant way to many economies in the world. Moreover generating income, in often large proportions in relation to GNP acro

concept meaning features scope importance origin initiative in india

1. Ben lost his job when his employer moved its plant. During the year, he collected unemployment benefits for three months, a total of $1,800. While he was waiting to hear from pr

The government of a country has just issued a series of zero-coupon bonds maturing at the end of years 1, 2, 3 and 4. Suppose the spot rates (or continuously compounded yields per

You decide to invest 1000 in a 5-year Treasury Inflation protected bond that each year offers a return of -1.5% plus the rate of inflation. You assume 1-year inflation rates over t

how do you figure out to do adjustments

1. What is the internal rate of return for a project that has a net investment of $150,000 and net cash flows of $40,000 for 5 years? 2. Using the profitability index, which of

Refer to Note 12, Employee Benefit Plans and Other Postretirement Benefits (pp. 86-91) from the Consolidated Financial Statements of Harley-Davidson (hereafter HOG) 2008 Annual Rep

What is Acid-test ratio A measurement of the capability of a business to meet its short-term commitments. It is considered by dividing excluding stock, current assets, by curre