We have a holding company with negative reserves because several years ago the cost of investment in a subsidiary company was written off (the company was loss making and had negative reserves).
The subsidiary company is now trading profitable and has build up a reasonable amount of equity.
So my question is whether the cost of the investment in the holding company can now be written back up? If so, this would created new P&L reserves, so would these be distributable?
Thanks
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9.26 (which indicates that you can actually account for the subsidiary at fair value - if you want to)