Which of the following profit & loss on revaluation of fixed assets of subsidiary company should be treated as a revenue item and adjusted with balance of the profit and loss account of the holding company while prep

CS Executive · Corporate and Management Accounting · PYQS · December 2023
Which of the following profit & loss on revaluation of fixed assets of subsidiary company should be treated as a revenue item and adjusted with balance of the profit and loss account of the holding company while preparing the consolidated profit and loss account?
(A) Profit related to the period after the date of acquisition of shares by holding company
(B) Profit related to the period before the date of acquisition of shares by holding company
(C) Loss related to the period after the date of acquisition of shares by holding company
(D) All the above

Answer & Explanation:

Correct Answer: Option (C)

Official answer key: (C).

Topics: Corporate Accounting

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