Holding company with more than one subsidiary company, Financial Accounting

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Holding company with more than one subsidiary company

Under this type of structure, the holding company controls more than one company. For example H ltd may Own 80% of S1, 75% of S2 and 60% of S3.

The consolidated balance sheet will remain as before because it involves adding the assets and liabilities of all subsidiaries to those of the holding company while excluding inter-company balances. However, separate cost of controls will need to be prepared for each subsidiary company because the  dates of acquisition may be different and the goodwill impaired also.

In the consolidated balance sheet, the remaining goodwill can be shown as one figure.


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