UNIT 3
Concept of Group & purpose of Consolidated Financial Statements Holding company subsidiary company Computation of goodwill minority interest pre-acquisition and post-acquisition profits inter-company transactions treatment of unrealized profits 1Q)Concept of Group & purpose of Consolidated Financial Statements It is an era of business growth many organizations are growing into large corporations by the process of acquisition, mergers, gaining control by one company over the other company, restructuring, etc. Acquisition & mergers ultimately lead to cost reduction / controlling the market / sharing the material supplies /product diversification / availing tax benefits. Whatever may be, the ultimate result is a large-scale corporation. The formation of a holding company is the most popular device for achieving these objectives. Many a time, a company expands by keeping intact its separate id...