UK Consolidation -- Q No-1 on sales and Q No-2 on equity


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Question-1

There are three Companies. A, B and C.

C is 100 owned by B and B is 100% owned by A.

The sale of Company C is consolidated in B, however, when company B is consolidated in A, Company C sales is excluded. Is it possible under IAS. Please provide IAS number and text as a reference.

Question-2

Company B is 100% owned by company A. Both companies are based in different countries.

Company B equity is 236 million, however, company A is showing investment at 183 million. they told us that this is due to exchange rate. Is it possible under IAS. Please provide IAS number and text as a reference.

Kind regards
 
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kirby

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Q1 if company B’s sales are 100% with A and B, then C will have no sales in Consolidated A
 

kirby

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Q2. Need more info. Are the amounts shown for both A and B stated in the same currency?
 
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Q1 if company B’s sales are 100% with A and B, then C will have no sales in Consolidated A
Company C sales was included in Company B consolidation, however, in Company A consolidation, Company C sales was excluded which was part of Company B consolidation.
 
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bklynboy

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Is company C selling to Company A? If so that's why its excluded from A but left in B. Need to be more specific who is selling to whom.
 
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All sales of Company C and B are to outside customers. Company C has no direct connection with company A in any regard.
 
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Dear Mr. Kirby - thanks for your reply.
Both company's Financial Statements are reported in Currency 'RMB'.
 

bklynboy

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All sales of Company C and B are to outside customers. Company C has no direct connection with company A in any regard.
I am lost. Unless when you are consolidating B in A you also consolidate C in A so it would count C sales twice which is why you have to eliminate one. Other than this I give up.
 
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kirby

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Given that sales from A, B and C are all to outside customers, then the sales for the consolidated company MUST include the sales from C. If not then someone is posting an incorrect consolidating adjustment .So look at the consolidating worksheets to see where this is happening.
 

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