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Parent/subsidiary company help needed please?

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The subsidiary is recognised in the parent accounts on the basis of investment cost, which also includes a loan due in relation to the purchase of the shares in the subsidiary.


The valuation of the two companies needs to be established in order to calculate the shareholding of the new holding company.

How would you approach this? 

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By WhichTyler
18th Jun 2019 20:56

Eh? What's the holding company?

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By Karen1
18th Jun 2019 21:04

Rather than it being a parent sub structure it will be a holding company owning the shares in the parent and the sub.

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By Accountant A
18th Jun 2019 21:06


How would you approach this? 

I'd approach it anonymously so that no-one knew who I was.

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By atleastisoundknowledgable...
18th Jun 2019 22:25

Is the structure going from Parent & Subsid, to Holdco with 2 Subsids?

Surely then isn’t P just selling S to H?

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