Hi,
my company has a subsidiary which is loss making. The capital has been fully consumed with accumulated losses. In consolidation, we have accounted for the losses. Now we are closing the company. What is the accounting treatment for the investment? in consolidation, this is offset against capital. How to account fo the write-off of the investment in consolidation?
thank you for your suggestion

If  company (A) has a subsidiary(b) during acquisition no goodwill was recognized  then the subsidiary (b) was merged with another company resulted for change it’s capital structure , so the Investment of (A) at (b) is now greater than it’s share of  new capital of (b) is the difference recognized as goodwill or what
please Help

If the subsidiary was established prior to the parent company, what are the possible complications? I.e. because the Holdings require higher initial capital the management decided that once the subsidiary generates revenue. the revenue can be use to fund the share capital of the parent.
On the establishment of the subsidiary the shareholders put more money over the share capital. can i transfer the excess of shareholders capital in the subsidiary to the parent company? what would be my entry?Please help.

Dear All,
We run a SAP system with a company in EUR as Local currency and USD as reporting currency. When we book a 100 EUR invoice automatically SAP books it based on the system rate as f.e.150 USD in the reporting currency. Sofar everthing is in order. When we pay the 100 EUR from a EUR bank account 14 days later USD rate is 1,4.  In Local currency we have no realized exchange differences nor revaluation differences. In the reporting currency however we are facing a difference of 10 USD. I tend to …

Dear all
I have a doubt about the consolidation of fully owned subsidiary.
While consolidat the financial statements, which rate of exchange we should apply :
i think, for income statement, the rate should be average rate.for balance sheet items, the closing rate for monetory items and for non-monetory items the historical spot rate.
further,what rate, ie buying or selling rate of exchange, should be applied
thank you
Qatar

Hi everyone,
In consolidation, are we allowed to offset negative goodwill against postive goodwill?
Thanks for your help.

1. Does IFRS require consolidated accounts to be reported for subsidiary companies pursuing dissimilar activities?
2. Do companies within the EU have to use IFRS as a standard?  Are other standards allowed?
3. It is common practice, according to a publication, that consolidated accounts are prepared from the point of view of the parent company, thus, separating the fair values of minority interests.  Is this practice being worked upon by IASB?
If possible, please quote the relevant standard and the location of the source copy.

Does IAS require consolidated accounts reported for subsidiary companies pursuing dissimilar activities (than those of the parent company)?
Can you quote the relevant IASs?  Where can I find copies and guidelines of the IASs for reading?
Do EU companies have to follow IAS since 2005?  What other standards (e.g. IFRS) are acceptable?  In which legislations?
Reference
Corporate Financial Accounting and Reporting 2nd Ed by Tim Sutton

If a subsidiary has a retained losses and it increase from year to year
In the parent separate financial statement as Subsidiary was recognized at cost Is there is a need to impairment or write down the cost of the investment of this subsidiary??

Company ABC and Company DEF both own Company XYZ (50%0 each). Company XYZ in turn owns subsidiary GHI (100%) and subsidiary XYZ (100%). Company ABC sells it s share in Company XYZ to Company DEF for a consideration of $1 and in turn buys 100% share of subsidiary GHI for $100,000. How do I account for sale of subsidiary GHI in Company XYZ’s accounts?
 
Please help!

Dear Members
Please advice, how to give effect of consolidation adjustments of the previous year into the current year. how do i give effect of goodwill and minority interest which was passed in the previous year in the current year.
your early response will be helpful.
 
best regards
Suraj Ratan Mohta
srm1930@gmail.com 
cell No.9820297934

Hi all,
Can you please help me with the following queries. Thanks in advance!
1. Goodwill – On consolidation, is it possible to actually increase goodwill figures or can goodwill only be reduced/impaired?
2. IFRS 3 states that negative goodwill is to be credited to the income statement. So if we CR Income, what’s the other double entry?
Apologies if the questions are basic!
Thanks

Dear All,
Request your valuable advice on the entries to be passed in the books of 1. Consolidated company 2. Stand Alone Parent Company for the purchase of shares on March 1,2009 and also the treatment of Goodwill.
Company X had already acquired 50 % of shares of Company Y 2 years back for a cash consideration of $65,000(Total Value of Common Stock/shares #1000).The parent company has been recording the investment under equity method and as on Feb 28,2009, the carrying value of investment is $69,000 (after considering the post acquisition share …

Hello,

I am an Austrian student and I would like to write about consolidation. More specifically I am going to write a comparison between full consolidated corporations and consolidation at equity. As far as I know, equity consolidation exists as term in german, but not in English. In English it is referred to as elimination of balances according to IAS 27 debt consolidation. IFRS 3 – Business Combinations is going to be relevant for me as well.

I am in the need of some good literature to read up …

Dear All , Kindly need your urgent help
We Have more than 10 companies in different countries and using different currencies :
1- our holding company send us every month end the conversion rate that we should use for each currency in order to be able to consolidate in 1 reporting currency.
2- Every month we report the PL ( Year to Date figures ) , and the balance with other schedules …
MY Question is : We should use the average rate of the PL and month end rate for Balance …

Dears
Would you please explain me what is the difference between affiliates
and subsidaries, and then if there is any difference in accounting
treatments.( i am asking these question w.r.t an investment co.)
2nd thing is how i will treat the personal expenses of a partner which
are being paid by the co. and where i have to show it in the balance
sheet.
Regards,
Hameed

Dear Hameed
The shares of subsidiary company should be owned by holding company
but for affiliates, the relationship is a connected party.
Thanks and regards
Simon

Dear Simon
Thanx for your reply, dear would you please explian me more, …

Please let me know the treatment of Inter company loan waiver.Example 
Company A is fellow subsidiary of company B.
And company B has given loan to company A for $ 10,000 and there is accrued interest of $ 1000 on loan.
Now Company B waive off all loans and interest.
Under IFRS it should be charged to P& L or equity?
Regards,

Company A holds total control over the board of directors of company B. But it does not have any voting rights in the company B. 
Is company A required to consolidate the results of company B with its  own results.
If yes, what is the share of results to be included for line by line consolidation. 
–
Regards,

Dear All ,
Now we are part of an International Company : so we have to report monthly figures of our 35 units , our 35 units are in different country so different  currency ,
We are Consolidating all the units in The Holding and we report one figure to the Worldwide company , every month they send us the rate that we should use.
MY QUESTION IS : AS PER MY KNOWLEDE FIXED ASSETS SHOULD HAVE A HISTORICAL RATE AND WE SHOULD NOT DO A MONTHLY EVALUATION FOR THAT  , …

Hi dear all 
 
Can someone help me in finding best consolidation notes in the context of IFRS-27, and the material should be the best in its use and at least 30 pages.
 
Waiting for response