- This topic has 1 reply, 2 voices, and was last updated 7 years ago by
.
Viewing 2 posts - 1 through 2 (of 2 total)
-
Posts
-
Hello sir, why do we cancel out the investment in the subsidiary while preparing the consolidated financial statements?
Hi,
The investment in the subsidiary is replaced with the assets/liabilities of the subsidiary 100% on a line by line basis. If we do not eliminate the investment then it is effectively double counting the investment as it is now represented by the net assets of the subsidiary.
Thanks
Viewing 2 posts - 1 through 2 (of 2 total)
- You must be logged in to reply to this topic.