Holding and subsidiary companies

Holding and subsidiary companies

Bachelor of Business Studies (BBS) — Fourth Year

Subject: Advanced Financial Accounting (ACC 252)

Unit 2: Various aspects of Company Accounts

Academic Year: 2083/84

Topic Objectives

After studying this topic, students should be able to:

• Explain the scope and key elements of holding and subsidiary companies.
• Apply the relevant accounting or audit procedures using the stated reporting framework and interpret the resulting evidence.

Curriculum Scope

• Concept of holding and subsidiary companies
• Consolidated balance sheet preparation
• Pre-acquisition and post-acquisition profit
• Minority interest and cost of control/goodwill or capital reserve
• Elimination of common transactions
• Contingent liabilities and unrealized profit
• Asset and liability revaluation
• Subsidiary dividends and preference shares

Detailed Microsyllabus

1. Group foundations

   1. Holding and subsidiary relationships.
   2. Pre-acquisition and post-acquisition profit.
   3. Consolidation perspective.

2. Ownership and acquisition

   1. Minority interest under the source terminology.
   2. Cost of control, goodwill or capital reserve.
   3. Revaluation effects under the specified method.

3. Consolidation adjustments

   1. Eliminate common transactions and balances.
   2. Remove unrealized intragroup profit.
   3. Consider contingent liabilities as prescribed.

4. Presentation

   1. Subsidiary dividends and preference shares.
   2. Combine adjusted assets, liabilities and equity.
   3. Verify the consolidated balance sheet.

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Curriculum reference: Tribhuvan University, Faculty of Management, revised four-year BBS curriculum, PDF pages 70–72.

Source note: The curriculum scope above is retained from the existing TU syllabus breakdown. The numbered study subtopics are editorial elaborations for teaching and study, rather than a separately issued TU syllabus. Unit or component allocations apply at their stated level; no separate topic hours or marks are assigned here. Examples involving current laws, rates, institutional products or Nepalese status must identify the relevant period and official materials; no changing numerical or legal requirements are invented here.