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Fixed Asset Hive Up

Fixed Asset Hive Up

Hi,

We hived up the assets of two subsiduary companies into the holding company and I would like to know what value to transfer the assets at. For example If an asset had a cost of £300k and we had depreciated by £100k in the subsiduary giving an NBV of £200k. Do we debit the asset account with £200k or do we debit the asset account with £300k and credit depreciation for £100k in the holding company?

Many Thanks

Steve  

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26th Nov 2012 14:22

Is there a minority interest?

Assuming the companies are a group for CGT purposes (75%) the tax transfer is at a price that gives neither gain nor loss on the transfer - ie base cost plus indexation to the date of the transfer,

If there is no minority interest you can transfer from an accounting point of view at any value which is appropriate for the purposes of FRS15 or internatuional equivalent.

However if there is a minority you must not transfer at a value below market value as that would be a fraud on the minority shareholding.  If the subsidiaries are 100% that is not a worry as any minority in the holding company would not then be relevant.

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