Please Help: Holding Company
Posted Date : 28-Jun-2012 , 04:20:31 pm | Posted By Surendra Kumar Dash
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 ?
Category : Accounts | Answers : 1 | Comments : 1 | Hits : 210
Answers
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.
Comments
GOVINDA
28-Jun-2012 , 05:28:28 pmDear Friend, you should refer AS - 21 'Consolidated Financial Statements''