Consolidation

Accountancy

Normally, while calculating the Consolidated P&L balance, we include: Holding company's own P&L balance, and Holding company’s share of post-acquisition P&L of the subsidiary But in illustration 9, Holding company’s share of post-acquisition reserves of the subsidiary ------ is also included. why?

Ill 9.pdf

Girinath A

CA Inter

★ 765

13-Jun-25 23:58

319

Answers (2)

When the company transfers profits to general reserve, it is a part of post acquisition profit. In this case there is no GR balance on date of acquisition. So entire GR balance is out of post acq profits.

CA Suraj Lakhotia

Admin

16-Jun-25 11:13

CA Suraj Lakhotia Admin

Thank you so much sir

Thread Starter

Girinath A

CA Inter

★ 765

16-Jun-25 11:34