If the net cost of investment of the holding company in the equity and preference shares of the subsidiary company is more than the share of the holding company in the net assets of the subsidiary company, the difference

CS Executive · Corporate and Management Accounting · PYQS · June 2023
If the net cost of investment of the holding company in the equity and preference shares of the subsidiary company is more than the share of the holding company in the net assets of the subsidiary company, the difference between the two is .........
(A) Goodwill on consolidation
(B) Capital reserve on consolidation
(C) Profit on consolidation
(D) Loss on consolidation

Answer & Explanation:

Correct Answer: Option (A)

Official answer key: (A).

Topics: Corporate Accounting

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