Consolidation of Holding Company and Subsidiary Company Final Accounts
Consolidated Final Accounts means Consolidated Profit & Loss Account and Consolidated Balance Sheet of a Holding Company and its Subsidiary Company or Companies.
What we have in mind here is a Holding Organization and one or more Organizations owned or controlled by it, called Subsidiary Organizations. For example, if A Ltd owns and or controls shares in B Ltd and C Ltd. A Ltd will be called Holding Company and B Ltd and C Ltd will be called Subsidiary Companies.
Now the accounting fundas
- The Holding Company and the Subsidiary Companies will maintain their accounts separately.
- These will have identical financial year.
- Since Group names are predetermined in GNUKhata these will be the same for all the organizations. It does not matter if one organization has created a new Sub-Group. Some organization may have Inventory module while some other may not have. It does not matter.
- Reports of all these companies can be viewed separately.
- The combined report will be prepared only for Profit & Loss Account and Balance Sheet (in both the formats). No other report will be combined.
- The reports will be displayed in summary format and will show only group and sub-group totals.
- There will be no changes in the data base of any organization.
- Inter Company lendings and borrowings will be removed.
- Inter Company Debtors and Creditors will be removed.
- Inter Company investments will be removed. For 8,9 and 10 above the user will be asked to provide data through a dialogue box. To see combined reports
- The user will have to log in as Admin in Holding Company.
- The user will select the subsidiary companies.
- The user will specify the date / period for which he wants to see the combined report. Date for Balance Sheet and Period for Profit & Loss Account.
- The user will select one report from the drop down containing Balance Sheet and Profit & Loss Account.