Subsidiary company exclusion features, Financial Accounting

Subsidiary company exclusion features

1) The standard does not require consolidation of a subsidiary acquired when there is evidence that the control is intended to be temporary.  However there must be evidence that the subsidiary is acquired with the intention to dispose of it within twelve months and that management is actively seeking a buyer. When a subsidiary previously excluded from consolidated is not disposed of within twelve months it must be consolidated as from the date of acquisition unless narrowly specified circumstances apply.

2) An entity is not permitted to exclude from consolidated an entity it continues to control simply because that entity is operating under severe long-term restrictions that significantly impair its ability to transfer funds to the parent. Control must be lost for exclusion to occur.

3) A subsidiary is not excluded from consolidated simply because the investor is a venture capital organization, mutual fund, unit trust or similar entity.

4) A subsidiary is not excluded from consolidated because its business activities are dissimilar from those of the other entities within the group. Relevant information is provided by consolidating such subsidiaries and disclosing additional information in the consolidated financial statements about the different business activities of subsidiaries. For example, the disclosure required by IAS 14 (segment reporting) help to explain the significance of different business activities within the group.

Posted Date: 12/12/2012 5:09:50 AM | Location : United States







Related Discussions:- Subsidiary company exclusion features, Assignment Help, Ask Question on Subsidiary company exclusion features, Get Answer, Expert's Help, Subsidiary company exclusion features Discussions

Write discussion on Subsidiary company exclusion features
Your posts are moderated
Related Questions
Continuing growth of the company has required that we issue the company's corporate debt soon. As you know, in 6 months we plan to issue $10 million worth of 20-year corporate bond

A huge number of financial ratios are in utilized. They complete a broad variety of functions and objectives. Managers estimate performance and investors match their expectations,

You are the CFO of Diversi?ed Industries. Diversi?ed has suffered through 4 or 5 tough years. This has deteriorated its ? financial condition to the point that Diversi?ed is in dan

Provide a brief (one typed page) discussion of analysis of the ratios of your company versus the competitor and the industry, addressing your company's liquidity, solvency, profita

Thurston Howell IV is the sole heir to the Howell Enterprise fortune. He does not participate in the business, preferring to tend to his comic book collection. He does however own

As an investor, you are considering buying stock in a relatively new company. Medical Horizons, Inc., has been in existence for 10 years and is now about to go public. The first st

ACTS OF BANKRUPTCY The following are the acts of bankruptcy on which a petition may be founded: (a) Assignment of property to trustee:   whereby one gives up all his proper

i have some homework that need help

Fraudulent preferences The trustee can set aside any transaction effected within the six months preceding the presentation of the petition in circumstances such as to make it

Trustees remuneration A trustee may not receive remuneration except: 1. By order of the court, if the trust is very onerous or the services of the trustee very valuable;