mixed or consolidated balance sheet
(Consolidated Balance Sheet) Consolidated Balance Sheet means such balance sheet in which the balance sheet of assets and liabilities to the facilitator and his subsidiaries or companies is prepared as if it were an undertaking. Its purpose is to inform the shareholders of the subsidiary company about the financial condition of the subsidiary companies and the subsidiary company so that they can know how their money is being used According to the Companies Act in India, mixed balance sheet of the holding company and the subsidiary company or It is necessary to prepare financial statements, also some forms are to be attached and some as per Schedule III Notifications are given. But in view of the requirements of listing of shares on inventory market, the listing agreement Sentence 32 of the Act provides that all listed companies are required to do accounting every year Prepare composite financial statements as per Standard 21 (AS-21) and include them in your annual report.
Before preparing the mixed balance sheet of the holding company and the subsidiary company, it is very important to know about some special items. These items are as follows-
(1) Wholly Owned Subsidiary Company – When a holding company is said to be a wholly owned company of its subsidiary company. In this case, while preparing the balance sheet, the sole right over the assets and liabilities of the subsidiary company belongs to the facilitating company. Therefore, while preparing the Balance Sheet, the assets and liabilities of the subsidiary company are shown together with the assets and liabilities of the holding company.
(2) Partially Owned Subsidiary Company – This is a subsidiary company in which all the shares are not taken by the holding company, that is, some part of the shares are also held by outsiders. If the subsidiary company does not hold all the shares of the subsidiary company, then while preparing the composite balance sheet, it is necessary that the balance sheet should show the interests of the persons who are the owners of the shares of the subsidiary company not held by the subsidiary company.
(3) Cost of acquisition by the holding company in return for acquiring the shares of the subsidiary company The return paid is the cost of acquisition. This consideration is more than the par value of the shares received or May also be less. The holding company shows this share purchase as an investment in its books, hence This item is shown on the asset side in the balance sheet of the holding company.
(4) Purchasing of more than half of the shares of the subsidiary company by the subsidiary company in the financial year—When the subsidiary company on any date in the middle of the financial year purchases the shares of the subsidiary company, it is necessary to keep in mind the following facts—
(i) General Reserve – The general reserve of the financial year of the subsidiary company is divided into two parts according to the order of cupping, for example, if the shares of the subsidiary company were purchased on 30 June and closed on 11 December, then the accumulation is divided into two equal parts. Thus before 30 June The accumulation is considered a capital gain for the facilitating company.
(ii) Capital accumulation fund – The capital accumulation or fund of the subsidiary company is also divided in the same proportion in which the above mentioned general reserve is divided. This accumulation and fund before the date of purchase There is a capital gain for the holding company.
(iii) Proposed dividend – Proposed dividend means a dividend which has been declared But the payment has not been made. This proposed dividend has been included in the current year’s profit of the company goes.
(iv) Profit of the current year – The profit of the subsidiary company for the current year is also divided in proportion to the date of purchase and the part which is before the date of purchase is considered as capital gain from the point of view of the holding company.
Stages of Compounded or Consolidated Balance Sheet
Composite or Consolidated Balance Sheet will be prepared in the following steps
(1) Number of shares purchased by the Sustaining Company by ascertaining the subsidiary and the Sustainable Company And to find the ratio between the number of shares purchased by other shareholders.
(2) To determine the capital and income profit and loss of the subsidiaries. The profit and accumulation before the date of purchase of shares of the subsidiary company, capital profit and profit and accumulation after the date of purchase of shares will be included in the calculation of income.
(3) Calculating goodwill or capital accumulation. of the shares out of the cost of the shares of the subsidiary Goodwill or capital accumulation can be calculated by deducting the face value and the amount of capital gain. Remanent There will be goodwill if positive and capital accumulation if negative.
(4) Calculation of minority shareholder interest, capitalized in the face value of the shares not taken by the holding company.
(5) Prepare the title of the mixed balance or consolidated balance sheet and determine the items to be shown and not shown in the mixed balance sheet. The following items are not shown in the mixed balance sheet
Profit and income should be added by adding up the profit share.
(a) Shares in subsidiary company
(b) Balance sheet of subsidiary company
(i) Share Capital sheet of
(iii) Statement of Profit & Loss 1
(c) Inter-company Transaction.
Calculation of Residuary Items
(1) The profit of the subsidiary company after the date of recording of Computation of Revenue Profit is called the Input Profit. It is shown by adding to the profits of the company holding the compound interest. It is calculated like capital gain.
If there is a loss after the date of purchase of shares, then it will be shown on the liability side of the balance balance balance sheet after deducting it in the profit of the holding company and if the income loss is more, it will be shown on the asset side. Assistant Co. Proportionate income profit of the subsidiary company in case of non-purchase of all the shares of
The share itself will be shown by adding to the profit of the holding company.