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Articles tagged with: CONSOLIDATION


[28 Aug 2008 | No Comment | 2,834 views]

i have got a question on transfer of shares involving share permium, can any one help ?
Facts :
(1) A holds 100% on C. 
(2) C ’s capital structure : 10,000 shares of US$1 par value. 
(3) A has invested in Co C of USD 1m for share capital of USD 10,000 and share premium of USD 990,000. 
(4) C incurs a loss and has negative net assets value.
If structure changes that there is an immediate holding co of  C named B, then A holds 100% on B and then B 100% on C.
Questions :
(1) Can A transfer the shares to B at consideration of USD 1 …


[28 Aug 2008 | No Comment | 2,608 views]

Hi all!
Can you tell me the journal entry of this prblem…
Goods sold Rs.10000
Discount on cash payment 5% 
Add tax 4%
Plz journalize it!

Sales                    10.000 Credit
Sales discounts          500 Debit
Tax payable               380  Credit
Cash                      9.880 Debit

Is this IFRS related? Or is this an accounting course exercise?
Cagri Gurses wrote:

Agree with the below. However, not sure if he means 4% tax on the 10k or
inclusive in the 10 k. If over and above, then theJEs could look like this
as shown below (broken down for easy understamding). I dont think if it is
inclusive in the 10k that …


[28 Aug 2008 | No Comment | 2,217 views]

Quik question for the group.
How would you record transfer pricing charges to a foreign subsidiary above the profit line in the P&L?  Specifically, if the TP charge is US$ 1.0MM – I understand the parent side would be an entry to a revenue account; however, the question is how to record it on the subsidiaries books (i) as a Cost of Sale or (ii) as a contra revenue?
I am treating it as revenue to the parent and COGS to the sub – looking for arguments that it should be treated …


[28 Aug 2008 | No Comment | 4,357 views]

Hi All
This is Muhammad Naveed
I have a query regarding the consolidation of subsidiaries. Does IAS-27 allow us to not consolidate subsidiaries which are immaterial for the group?
Is it specifically mentioned somewhere in IAS?

Well Naveed
Actually materiality is an underlying concept of the Financial Statements.So anything which is immaterial needs not to be disclosed or adjusted.
Thanks and regards

IAS 1 is the overall standard to refer to:

Materiality and Aggregation
29.        Each material class of similar items shall be presented separately in the financial statements.  Items of a dissimilar nature or function shall be presented separately unless …