tailieunhanh - Ebook Corporate financial reporting: Part 2

Part 2 book “Corporate financial reporting” has contents: Group financial statements, sustainability reporting, accounting and reporting of financial instruments and other external reporting, share based payments in ind AS, and other contents. | Study Note - 3 GROUP FINANCIAL STATEMENTS This Study Note includes Holding Company Method of Combination Accounting Treatment Treatment of Investment in Associate in Consolidated Financial Statement (AS-23) Treatment of Investment in Joint Venture in consolidated Financial Statment (AS-27) Preparation of Group Cash Flow Statement HOLDING COMPANY The tendency to combine in order to derive advantages of economics of scale as well as market power/monopoly power, firms may amalgamate – one firm may absorb another firm in which case their size increases and legal in a larger firm comes into existence. This implies dissolution of one or more existing firms. A legal procedure has to be followed for this purpose. However, Firms may continue without any dissolution by investing in the shares of another company and thereby, acquiring ownership interest to the extent of the holding. If a company holds more than 51% of the issued share capital of another firm or controls composition of Board of Directors of another firm, the company holding the majority share is termed as holding company and the company whose shares are held is termed as subsidiary company. A partly owned subsidiary is one in which the holding company (or the group) does not hold all the shares. The interest of shareholders outside the group is called ‘Minority Interest’. While the wholly owned subsidiary is one where all the shares are owned by the holding company. From legal point of view both the companies continue to enjoy, separate legal entity but from the point of view of investor, lender as well as management, then, may very well be regarded as single entity. Legally accounts of these companies are complied separately but a more realistic picture will be presented if consolidated accounts especially with respect to published statements- income and position statements are also included in published reports. For this purpose inter company transactions have to be .

• Y khoa - Dược
• Corporate financial reporting
• Financial reporting
• Group financial statements
• Sustainability reporting
• Reporting through XBRL
• Government accounting in india