Please Help: Holding Company
Posted Date : 28-Jun-2012 , 04:20:31 pm | Posted By: Surendra Kumar Dash
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Accounts | Answers :
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Dear Friends, Can you tell me what is the treatment in preparing CFS if a holding company transfers stock to subsidiary company at transfer price and vice-verse ? |
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Answers:
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Answer by: Krishna Chandra Santi |
The difference between transfer price and cost will be termed as unrealized profit or loss. It will effect in the cash flow if the statement is prepared under direct method.
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Posted By : GOVINDA |
28-Jun-2012, 05:28:28 |
Dear Friend, you should refer AS - 21 'Consolidated Financial Statements'' |
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