What value is used when transferring assets from parents to the subsidiary? Assets transferred from parent...
What value is used when transferring assets from parents to the subsidiary? Assets transferred from parent to sub should be recorded at the assets?
Homework Answers
Before the concept of transferring the asstes from parent to the subsidiary, let's first understand what is a parent company and what is subsidiary company.
Parent company is a company which owns the subsidiary company and holds all the management and decision making of its subsidiary company. Simply said parent company us the owner of subsidiary company.
Subsidiary company works under parent company. All the decision makings of subsidiary company are done by its parent company.
Now, the value which is used when transferring asstes from parents to subsidiary is the written down value of assets.
- And the assets will be shown as assets in subsidiary financial statements, if standalone statement is prepared.
- Otherwise assets in parent company if consolidated financial statements are prepared.
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What value is used when transferring assets from parents
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