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Holdin company consolidation

Consolidating tax

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#1 Nelmia



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Posted 21 September 2014 - 02:07 PM

Question when consolidating financial statements between a holding company with 1 sub, do we offset the investment accounts(investment from and investment of) from the consolidated balance sheet as we would do any inter company account? If so where does the holding company shows it's investment in the 1120 tax return

#2 CashPensionsAccruals



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Posted 16 December 2014 - 05:45 AM

When you consolidate financial statements, you close the investment account in the sub (most likely the investment will be equity or buying stock). The investment account is offset by eliminating the the sub's equity accounts and the balance will be in a differential holding account.


Example -


Capital - Company U Dr.       10000

APIC - Company U   Dr.       40000

Retained Earnings     Dr.       12000

Differential                 Dr.        50000


            Investment in Stock of Company U  Cr.       112,000

#3 raduklaus



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Posted 17 December 2014 - 08:25 AM

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