Capital Dividend received by the holding company is …………… its cost of investment in the equity shares of subsidiary company while computing goodwill/capital reserve.

CS Executive · Corporate and Management Accounting · PYQS · December 2024
Capital Dividend received by the holding company is …………… its cost of investment in the equity shares of subsidiary company while computing goodwill/capital reserve.
(A) added to
(B) deducted from
(C) neither added nor deducted
(D) It is totally unrelated

Answer & Explanation:

Correct Answer: Option (B)

Official answer key: (B).

Topics: Consolidated Financial Statements

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