There is apparently an accounting change coming in next year affecting the way financial services (and possibly other) companies account for minority interests. I understand this may require companies to treat a minority investment as a trading/available for sale investment rather than an equity investment at present. Has anyone heard of this? I’ve tried to verify this with very little success.

Thank Riyer. What about the balance sheet? Do i Have to show consolidated figures 2009? Or i simply put the comparatives of the company only. Regards

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Dear all,
I would like to have your opinion on the below.
A Company usually prepares consolidated accounts for a 100% owned subsidiary and the year end is March.
For the year ended March 2010, the shares were transfered to another company on the 15th …

Could you please help with the following situation?
The Company A (subsidiary) has financial liability to the third party. This liability is recognized at amortized cost using effective interest rate method as it repayable in 2020. We expect that this liability will be sold in 2010 by third party to parent of company A. After this transaction we expect that Company A will issue new shares as full settlement of this liability.
My question relates to derecognition of this liability => difference between carrying amount of liability and its fair value. Is …

I have the following company :
Assets                          150
Share capital             -100
Accumulated loss    550
Liabilities                    -600
Parent buys the company by issuing its 250 of its own shares valued @ $1 each = $250
How do I firstly bring this into the companys books and then consolidation entries.
PARENT
Dr Investement in sub         100 (created so when I consolidate the investment equals the share capital of …

While consolidating foriegn subsidiary account with parent company, what will be the treatment of currency exchange differences arising out of consolidation. I want to know the following two  matters :
1. The treatment of exchange difference arises out of eliminating income statement items, like inter company sales, puchase etc
2. The treatment of echange difference in consolidating balance sheet items
Thank you

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What is the treatment of shareholders current account in consolidation? Does it need to be eliminated?

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Hello,
I would be grateful for your advice on the following situation:
Company P buys 100% of company A and recognises goodwill in its consolidated financial statements. 3 months later the two companies merge and in the next period’s financial statements the goodwill is no longer separately presented, but presented in the notes as part of the investment property and is called “value of rentals” (company A owned a shopping mall). My question is: What happens to goodwill when a parent and subsidiary merge and which IFRS/IAS would you advise me to …

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

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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

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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.

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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

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

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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.

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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

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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??

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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!

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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

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