ADVANTAGES OF CONSOLIDATION
Single source document
Intrinsic value of share
Return on investment in subsidiaries
Acquisition of subsidiary
Evaluation of holding company
Consolidated accounts or Group AcccountsWarui Maina
Lecture notes on Consolidated accounts or Group Accounts. They have illustrations, are brief and simple to understand. Excellent for revision and quick review for CPA, B.Com, Finance and Accounting students.
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Holding companies like NIcholas Vita Columbia Care is only some of the testaments that holding companies will really work fine as long as you know what you are doing. These explanations are not really complete but it will provide you some information on how to start a holding company.
Consolidated accounts or Group AcccountsWarui Maina
Lecture notes on Consolidated accounts or Group Accounts. They have illustrations, are brief and simple to understand. Excellent for revision and quick review for CPA, B.Com, Finance and Accounting students.
A simple introduction about a holding companyJane Hayden
Holding companies like NIcholas Vita Columbia Care is only some of the testaments that holding companies will really work fine as long as you know what you are doing. These explanations are not really complete but it will provide you some information on how to start a holding company.
Management- Financial management
Finance is a life-blood for an organisation.
Without finance the business neither started nor survive.
Capital structure
Cost of capital
leverage
Department of Management- Principles of accounting
Financial Accounting
Accounting
financial reports
organization's management
stakeholders
income statement
Accounting as an Aid toDecision Making
ACCOUNTING PRINCIPLES
ACCOUNTING CONVENTIONS
The Balance Sheet
Balance Sheet Transactions
Financial Statement- CLASSIFICATION OF CAPITAL AND REVENUE EXPENDITURE AND RE...Trinity Dwarka
Department of Management- FINANCIAL STATEMENTS
CLASSIFICATION OF EXPENDITURE
CAPITAL EXPENDITURE
DISCLOUSRE IN FINANCIAL STATEMENTS:
REVENUE EXPENDITURE
DEFFERRED REVENUE EXPENDITURE
REVENUE RECEIPTS
ACCOUNTING TREATMENT
Charge of Income Tax
Income tax is charged in assessment year at rates specified by the Finance Act applicable on 1st April of the relevant assessment year.
It is charged on the total income of every person for the previous year.
Total Income is to be computed as per the provisions of the Act
Income tax is to be deducted at source or paid in advance wherever required under the provision of the Act.
Person u/s 2(31) includes,
An Individual,
Hindu Undivided Family (HUF),
A Company,
A Firm,
An Association of Persons(AOP) or Body of Individuals (BOI),
A Local Authority,
Every other Artificial Juridical Person
Incidence of Tax
Incidence of Tax
Corporate Law - COMPANY SECRETARY
QUALIFICATIONS OF THE SECRETARY
QUALTITIES OF THE COMPANY SECRETARY
DUTIES OF COMPANY SECRETARY
STATUTORY DUTIES
FUCTIONS OF SECRETARY.
LEGAL POSTION OF THE SECRETARY
ACTUAL POSITION OR STATUS OF A COMPANY SECRETARY
APPOINTMENT OF A COMPANY SECRETARY
CAPITAL STRUCTURE : Capital structure can be defined as the mix of owned capital (equity, reserves & surplus) and borrowed capital (debentures, loans from banks, financial institutions)
WORKING CAPITAL
According to the definition of Weston and Brigham, “Working Capital refers to a firm’s investment in short-term assets, cash, shortterm securities, accounts receivables and inventories”. Working Capital may be categorised: - Gross Working Capital - Net Working Capital
In the last five years, financial management has undergone vast changes. From simple sourcing to utilisation, additional areas which have gained importance are, risk management, maintenance & growth under risk engulfed environment, it is not simple market risk or environmental risk additional factors added now are pandemic risk, even factory layouts, safety& security of employees, added insurance costs provisions for bad debts etc have assumed significance. Analysis of costs , compilation &control has assumed tremendous significance . In view of this , these slides may have to be recasted , aitered ,modified & regrouped presented to facilitate quick & realistic managerial decision making which I proposed to do shortly.
Trinity Institute of Professional Studies (TIPS), ranked as one of the best Journalism College in Delhi NCR offers Bachelor of Arts in Journalism and Mass Communication (BAJMC) is a three-year undergraduate course aimed to imbibe journalistic and communication skills within the students, enabling them to prove their mettle in the media industry. It is considered as one of the best BAJMC Institute in West Delhi (Dwarka). BA JMC is a comprehensive and dynamic course, designed to enlighten students about the media industry, make them well versed with all the aspects of the field and prepare them to serve as responsible professionals. The curriculum is designed to cover both theoretical and practical subjects and provide hands-on training to the students leading to TIPS, as one of the best journalism and mass communication institutes of GGSIPU in Delhi-NCR.
Bachelor in Computer Application is one of the most popular courses among the students who want to make their career in the Information Technology area. It is a three-year undergraduate program that enhances students' knowledge and skills to meet the needs of the Information Technology (IT) industry. BCA is a course designed to give an insight to the students regarding various CS & IT concepts and their practical applications as well. TIPS, Dwarka offers excellent Placements in BCA colleges in Delhi NCR as enables students to grab promising opportunities available to them in the leading companies like Infosys, Amazon, Cognizant, Microsoft, HCL, Capgemini, Aricent, TCS, Concentrix, British Telecom, Network Bulls, IBM, and many more. The emphasis on quality and excellence has made TIPS one of the best BCA Institute of GGSIPU in Delhi NCR.
Learn More: www.tips.edu.in/bca
Principles of Management-Management-Concept & MeaningTrinity Dwarka
Principles of Management-Management-Concept & Meaning
Management- Traditional Approach
Modern Approach
Management - Meaning
Management: Nature & Characteristics
Management as an Art
Management as a Science
Importance of Management
Principles of Management- Management-Concept & Meaning
Management- Traditional Approach
Modern Approach
Management - Meaning
Management
Nature & Characteristics
Management as an Art
Management as a Science
Importance of Management
Principles of Management- Planning
Nature of Planning
Significance of Planning
Process of Planning
Limitations of Planning
Essential Requirements of an Effective Plan.
Types of Planning
Derivative Plans
Principles of Planning
Organizing Authority & Responsibility- Principles of ManagementTrinity Dwarka
Organizing Authority & Responsibility- Principles of Management
Organizing: Meaning
OrganizationcNature of Organizing
Process of Organizing
Significance of Organizing
Authority
Sources of Authority
Responsibility
Staffing- Principles of Management
Concept
Features
Nature
Scope
Sequence of activities in staffing
Principles of Staffing
Job Analysis
Recruitment
Training & Development
Directing-Principles of Management
Nature of Directing
Importance of Directing
Techniques of Directing
Directing- Motivation
Process of Motivation
Motivation Techniques
Types of Motivation
Dimensional Modelling-Data Warehouse & Data MiningTrinity Dwarka
Dimensional Modelling-Data Warehouse & Data Mining
Design Requirements
ER Modeling
Problems with ER Model
ER vs Dimensional Modeling
Dimensional Modeling:Salient Features
Dimensional Modeling: Vocabulary
Star Schema
Data Preprocessing- Data Warehouse & Data MiningTrinity Dwarka
Data Preprocessing- Data Warehouse & Data Mining
Data Quality
Reasons for inaccurate data
Reasons for incomplete data
Major Tasks in Data Preprocessing
Forms of Data Preprocessing
Data Cleaning
Incomplete (Missing) Data
Computer Networks- Network Basics
Network Definition
Simultaneous access to data
Shared peripheral device
Sharing Data
The Uses of Network
The Uses of a Network
Common Network Types
Java Programming- Introduction to Java Applet ProgramsTrinity Dwarka
Java Programming- Introduction to Java Applet Programs
Java Applets
Java Applet Classes
Contrast Application with Applet
Applet Declaration
Body of an Applet
Applets
Applets and Web Pages – HTML
Running the Applet
Database Management System
DBMS Functionality
Main Characteristics of the Database Approach
Instances and Schemas
Data independence
The Entity-Relationship Model
Database Users
Advantages of Using the Database Approach
The world of search engine optimization (SEO) is buzzing with discussions after Google confirmed that around 2,500 leaked internal documents related to its Search feature are indeed authentic. The revelation has sparked significant concerns within the SEO community. The leaked documents were initially reported by SEO experts Rand Fishkin and Mike King, igniting widespread analysis and discourse. For More Info:- https://news.arihantwebtech.com/search-disrupted-googles-leaked-documents-rock-the-seo-world/
Premium MEAN Stack Development Solutions for Modern BusinessesSynapseIndia
Stay ahead of the curve with our premium MEAN Stack Development Solutions. Our expert developers utilize MongoDB, Express.js, AngularJS, and Node.js to create modern and responsive web applications. Trust us for cutting-edge solutions that drive your business growth and success.
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Building Your Employer Brand with Social MediaLuanWise
Presented at The Global HR Summit, 6th June 2024
In this keynote, Luan Wise will provide invaluable insights to elevate your employer brand on social media platforms including LinkedIn, Facebook, Instagram, X (formerly Twitter) and TikTok. You'll learn how compelling content can authentically showcase your company culture, values, and employee experiences to support your talent acquisition and retention objectives. Additionally, you'll understand the power of employee advocacy to amplify reach and engagement – helping to position your organization as an employer of choice in today's competitive talent landscape.
Company Valuation webinar series - Tuesday, 4 June 2024FelixPerez547899
This session provided an update as to the latest valuation data in the UK and then delved into a discussion on the upcoming election and the impacts on valuation. We finished, as always with a Q&A
VAT Registration Outlined In UAE: Benefits and Requirementsuae taxgpt
Vat Registration is a legal obligation for businesses meeting the threshold requirement, helping companies avoid fines and ramifications. Contact now!
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Enterprise Excellence is Inclusive Excellence.pdfKaiNexus
Enterprise excellence and inclusive excellence are closely linked, and real-world challenges have shown that both are essential to the success of any organization. To achieve enterprise excellence, organizations must focus on improving their operations and processes while creating an inclusive environment that engages everyone. In this interactive session, the facilitator will highlight commonly established business practices and how they limit our ability to engage everyone every day. More importantly, though, participants will likely gain increased awareness of what we can do differently to maximize enterprise excellence through deliberate inclusion.
What is Enterprise Excellence?
Enterprise Excellence is a holistic approach that's aimed at achieving world-class performance across all aspects of the organization.
What might I learn?
A way to engage all in creating Inclusive Excellence. Lessons from the US military and their parallels to the story of Harry Potter. How belt systems and CI teams can destroy inclusive practices. How leadership language invites people to the party. There are three things leaders can do to engage everyone every day: maximizing psychological safety to create environments where folks learn, contribute, and challenge the status quo.
Who might benefit? Anyone and everyone leading folks from the shop floor to top floor.
Dr. William Harvey is a seasoned Operations Leader with extensive experience in chemical processing, manufacturing, and operations management. At Michelman, he currently oversees multiple sites, leading teams in strategic planning and coaching/practicing continuous improvement. William is set to start his eighth year of teaching at the University of Cincinnati where he teaches marketing, finance, and management. William holds various certifications in change management, quality, leadership, operational excellence, team building, and DiSC, among others.
Discover the innovative and creative projects that highlight my journey throu...dylandmeas
Discover the innovative and creative projects that highlight my journey through Full Sail University. Below, you’ll find a collection of my work showcasing my skills and expertise in digital marketing, event planning, and media production.
Putting the SPARK into Virtual Training.pptxCynthia Clay
This 60-minute webinar, sponsored by Adobe, was delivered for the Training Mag Network. It explored the five elements of SPARK: Storytelling, Purpose, Action, Relationships, and Kudos. Knowing how to tell a well-structured story is key to building long-term memory. Stating a clear purpose that doesn't take away from the discovery learning process is critical. Ensuring that people move from theory to practical application is imperative. Creating strong social learning is the key to commitment and engagement. Validating and affirming participants' comments is the way to create a positive learning environment.
3.0 Project 2_ Developing My Brand Identity Kit.pptxtanyjahb
A personal brand exploration presentation summarizes an individual's unique qualities and goals, covering strengths, values, passions, and target audience. It helps individuals understand what makes them stand out, their desired image, and how they aim to achieve it.
Affordable Stationery Printing Services in Jaipur | Navpack n PrintNavpack & Print
Looking for professional printing services in Jaipur? Navpack n Print offers high-quality and affordable stationery printing for all your business needs. Stand out with custom stationery designs and fast turnaround times. Contact us today for a quote!
Personal Brand Statement:
As an Army veteran dedicated to lifelong learning, I bring a disciplined, strategic mindset to my pursuits. I am constantly expanding my knowledge to innovate and lead effectively. My journey is driven by a commitment to excellence, and to make a meaningful impact in the world.
Digital Transformation and IT Strategy Toolkit and TemplatesAurelien Domont, MBA
This Digital Transformation and IT Strategy Toolkit was created by ex-McKinsey, Deloitte and BCG Management Consultants, after more than 5,000 hours of work. It is considered the world's best & most comprehensive Digital Transformation and IT Strategy Toolkit. It includes all the Frameworks, Best Practices & Templates required to successfully undertake the Digital Transformation of your organization and define a robust IT Strategy.
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This PowerPoint presentation is only a small preview of our Toolkits. For more details, visit www.domontconsulting.com
1. TRINITY INSTITUTE OF PROFESSIONAL STUDIES
Sector – 9, Dwarka Institutional Area, New Delhi-75
Affiliated to Institution of G.G.S.IP.U, Delhi
Corporate Accounting
Paper Code-BCOM202
Assistant Professor
Neha Spall
2. TRINITY INSTITUTE OF PROFESSIONAL STUDIES
Sector – 9, Dwarka Institutional Area, New Delhi-75
Affiliated to Institution of G.G.S.IP.U, Delhi
Holding companies account
3. TRINITY INSTITUTE OF PROFESSIONAL STUDIES
Sector – 9, Dwarka Institutional Area, New Delhi-75
Holding and subsidiary company
Holding
company
• As per sec 2 (46) holding company, in
relation to one or more other companies,
means a company of which such companies
are subsidiary companies
Subsidiary
company
• As per sec.2(86) subsidiary company in
relation to any other company, means a
company in which the holding company (I)
Controls the composition of BOD (II) Controls
more than half of the total share capital.
4. TRINITY INSTITUTE OF PROFESSIONAL STUDIES
Sector – 9, Dwarka Institutional Area, New Delhi-75
CONSOLIDATION OF FINANCIAL
STATEMENT
– ADVANTAGES OF CONSOLIDATION
1. Single source document
2. Intrinsic value of share
3. Return on investment in subsidiaries
4. Acquisition of subsidiary
5. Evaluation of holding company
• DISADVANTAGES OF CONSOLIDATION
1. Concealment of information
2. Misleading information
5. TRINITY INSTITUTE OF PROFESSIONAL STUDIES
Sector – 9, Dwarka Institutional Area, New Delhi-75
Wholly owned subsidiary company
• From the following extract of the H Ltd. and S Ltd. ,
prepare a consolidated balance sheet of H Ltd. and
its subsidiary S Ltd.
Liabilities H Ltd. S Ltd Assets H Ltd. S Ltd.
Share capital
per share of
Rs. 10 each
10,00,000 5,00,000 Sundry assets 7,00,000 5,40,000
Other
liabilities
2,00,000 40,000 Investment in
50,000 shares
of S Ltd. at
par
5,00,000 _
total 12,00,000 5,40,000 12,00,000 5,40,000
6. TRINITY INSTITUTE OF PROFESSIONAL STUDIES
Sector – 9, Dwarka Institutional Area, New Delhi-75
Consolidated balance sheet
AS PER SHEDULE VI
• Consolidated balance sheet of H Ltd and its
subsidiary S Ltd as on……
S
no.
Particulars Not
e
Rs.
I
II
EQUITY AND LIABILITIES
1. Share holders funds
(a) share capital
2 . Other liabilities
Total equity and liabilities
ASSETS
Sundry assets
Total Assets
1
2
3
10,00,000
2,40,000
12,40,000
12,40,000
12,40,000
7. TRINITY INSTITUTE OF PROFESSIONAL STUDIES
Sector – 9, Dwarka Institutional Area, New Delhi-75
Notes to account
1. Share capital
issued subscribed and fully paid up
1,00,000 equity share of Rs.10 each (H Ltd) 10,00,000
2. Other liabilities
H Ltd. 2,00,000
S Ltd. 40,000
3. Other Assets
H Ltd. 7,00,000
S Ltd. 5,40,000
8. TRINITY INSTITUTE OF PROFESSIONAL STUDIES
Sector – 9, Dwarka Institutional Area, New Delhi-75
Minority interest
• When the share is being held jointly by the holding company
and outside shareholders or minority interest holders.
In brief, the total interest of the outside shareholders consist
of :
I. Their proportionate share in the share capital of the
subsidiary company
II. Their proportionate share in the reserves (both pre –
acquisition and post- acquisition ) of subsidiary company.
III. Their proportionate share in the surplus (both pre –
acquisition and post- acquisition ) of subsidiary company.
9. TRINITY INSTITUTE OF PROFESSIONAL STUDIES
Sector – 9, Dwarka Institutional Area, New Delhi-75
Minority interest
• From the following extract of the H Ltd. and S Ltd. ,
prepare a consolidated balance sheet of H Ltd. and
its subsidiary S Ltd.
Liabilities H Ltd. S Ltd Assets H Ltd. S Ltd.
Share capital
per share of
Rs. 10 each
10,00,000 5,00,000 Sundry
assets
8,00,000 5,40,000
Other
liabilities
2,00,000 40,000 Investment
in 40,000
shares of S
Ltd. at par
4,00,000 _
total 12,00,000 5,40,000 12,00,000 5,40,000
10. TRINITY INSTITUTE OF PROFESSIONAL STUDIES
Sector – 9, Dwarka Institutional Area, New Delhi-75
Consolidated balance sheet AS PER
SHEDULE VI
• Consolidated balance sheet of H Ltd and its
subsidiary S Ltd as on……
S no. Particulars Note Rs.
I
II
EQUITY AND LIABILITIES
1. Share holders funds
(a) share capital
2. Minority interest
3 . Other liabilities
Total equity and liabilities
ASSETS
Sundry assets
Total Assets
1
2
3
4
10,00,000
1,00,000
2,40,000
13,40,000
13,40,000
13,40,000
11. TRINITY INSTITUTE OF PROFESSIONAL STUDIES
Sector – 9, Dwarka Institutional Area, New Delhi-75
Notes to account
1. Share capital
issued subscribed and fully paid up
1,00,000 equity share of Rs.10 each (H Ltd) 10,00,000
2. Minority interest
(1/5 share in the share capital of S Ltd.) 1,00,000
3. Other liabilities
H Ltd. 2,00,000
S Ltd. 40,000
4. Other Assets
H Ltd. 8,00,000
S Ltd. 5,40,000
12. TRINITY INSTITUTE OF PROFESSIONAL STUDIES
Sector – 9, Dwarka Institutional Area, New Delhi-75
13. TRINITY INSTITUTE OF PROFESSIONAL STUDIES
Sector – 9, Dwarka Institutional Area, New Delhi-75
Example
• For example if Rs.50,000 shares (face value or nominal
value) is purchased by the holding company for
Rs.60,000, the investments would represent : non
current investments ( at cost ): Rs.60,000. the goodwill
will be calculated as under:
Investment at cost – paid up value of share purchased
Rs.60,000 – Rs.50,000 = Rs.10,000
On the other hand if purchased for Rs.45,000, then
5,000 will be shown as capital reserve on consolidation.
14. TRINITY INSTITUTE OF PROFESSIONAL STUDIES
Sector – 9, Dwarka Institutional Area, New Delhi-75
Cost of control
• From the following extract of the H Ltd. and S Ltd. , prepare a
consolidated balance sheet of H Ltd. and its subsidiary S Ltd.
Liabilities H Ltd. S Ltd Assets H Ltd. S Ltd.
Share capital per share
of Rs. 100 each
10,00,000 5,00,000 Sundry assets 7,00,000 6,20,000
Creditors 2,00,000 50,000
Reserves _ 20,000 Investment in 5,000
shares of S Ltd. at cost
6,00,000 _
Profit and loss account 1,00,000 50,000
Total 13,00,000 6,20,000 13,00,000 6,20,000
15. TRINITY INSTITUTE OF PROFESSIONAL STUDIES
Sector – 9, Dwarka Institutional Area, New Delhi-75
CALCULATION OF COST OF CONTROL OR GOODWILL
• Cost price of the investment in the shares of S Ltd.
Rs.6,00,000
Less: the nominal value of the shares acquired Rs.5,00,000
Rs.1,00,000
Less: share in pre-acquisition reserves Rs.20,000
share in pre-acquisition surplus Rs50,000
Rs.30,000
16. TRINITY INSTITUTE OF PROFESSIONAL STUDIES
Sector – 9, Dwarka Institutional Area, New Delhi-75
Consolidated balance sheet AS PER SHEDULE VI
Consolidated balance sheet of H Ltd and its subsidiary S Ltd as on……
S no. Particulars Note Rs.
I
II
EQUITY AND LIABILITIES
1. Share holders funds
(a) share capital
(b) reserves and surplus
2. Minority interest
3 . current liabilities
Trade payable
Total equity and liabilities
ASSETS
Non current assets
(a) Fixed assets
(i) Tangible (assumed)
(ii) Intangible
Total Assets
1
2
3
4
5
10,00,000
1,00,000
_
2,50,000
13,50,000
13,20,000
30,000
13,50,000
17. TRINITY INSTITUTE OF PROFESSIONAL STUDIES
Sector – 9, Dwarka Institutional Area, New Delhi-75
18. TRINITY INSTITUTE OF PROFESSIONAL STUDIES
Sector – 9, Dwarka Institutional Area, New Delhi-75
Inter company transaction
The inter company transaction are to be
eliminated while preparing the consolidated
balance sheet like:
a. Loan
b.Debtors and Creditors
c. Similarly bills of exchange
19. TRINITY INSTITUTE OF PROFESSIONAL STUDIES
Sector – 9, Dwarka Institutional Area, New Delhi-75
•Thank you