consolidation based on other reasons

This topic has 2 replies, 2 voices, and was last updated 13 years ago by acnca.

Viewing 3 posts - 1 through 3 (of 3 total)

Author

Posts
May 31, 2013 at 10:59 am #127962
acnca
Member
- Topics: 14
- Replies: 27
Would i be correct to consolidate a subsidiary’s results with parent even if based on no of shares acquired is less than 50 % but there is a written agreement with other investors .Does the agreement confer right to then consolidate with parents own results?
This qn may sound strange but i wanted to understand what constitutes control (undet the 4 items listed on OT notes page 31)
thanks
May 31, 2013 at 11:25 am #127966
MikeLittle
Keymaster
- Topics: 27
- Replies: 23369
Yes – it’s an example which is given within these notes where a comapny should consolidate the results of another even though the first company owns <50% of the shares. If there is an agreement with another shareholder which gives, in aggregate, control the the victim company should be consolidated into the results of the vulture
May 31, 2013 at 12:16 pm #127973
acnca
Member
- Topics: 14
- Replies: 27
Thanks.That clarifies the point sought.Conclusion:it is not only on basis of aggregate share share acquisition that control is bestowed but…………a) written agreement amongst others.
Thanks for quick comment.Hope to murder this paper!
A
Author

Posts

Viewing 3 posts - 1 through 3 (of 3 total)

You must be logged in to reply to this topic.