Profit attributable to MI Profit after tax of S x MI (%) Consolidation adjustment Inter-company profits or losses arise when inventories are sold at price other than costs to the selling company within the group.
Profits are realized only when purchased inventories from a member company were sold off to an outside party.
CIS is the combination of the operation of the individual subsidiaries and parent company Items of income and expenses disclosed in the CIS are the those transactions between the group and third parties (entities outside the group An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.
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The company which will discount the bills must include a note as a contingent liability in the Balance Sheet. Before publishing your articles on this site, please read the following pages:1.
But such note is not necessary in respect of inter-company bills discounted or endorsed in the Consolidated Balance Sheet.
Operating expenses The aggregate expenses of the H company and those of the subsidiary 4.
Investment income It will comprise dividends and interest and other income excluding dividends and interest received/receivables from subsidiaries. Taxation Combine total of H company and those of the subsidiary 3.
The transactions relating to purchases and sales of goods which occur between the holding company and the subsidiary company are shown in the assets side of the Balance Sheet of one company and in the liability side of the Balance Sheet of the other company.
AICPA Practice Alert 2003-02 provides additional guidance for implementing SAS no.
99 and discusses using computer- assisted audit tools to improve test effectiveness.
But, if the bill is endorsed or discounted by the bank, the same must be shown in the liability side of the Consolidated Balance Sheet since the accepting company will have to pay such bill at maturity.
Therefore, the said bills may not be treated as ‘mutual debt’.