Question

10. Face value debentures of subsidiary co. held by HoldingCompany is deducted from:i) Debenturesii) Cost of controliii) Minority interestiv) Debentures in consolidated balance sheet​

Answer 1

Answer:

Step-by-step explanation:

Answer 2

The right answer is option b:

Step-by-step explanation:

ii) Cost of control

• COST OF CONTROL (COC) is the sum paid by a holding company for shares in its subsidiary firm,
• sometimes at a premium, over and above the value they would fetch as an investment,
• in recognition of the specific benefit that the company obtains through control.

• The difference between the price paid by the holding company for the shares acquired in the subsidiary firm and their intrinsic worth should be recognised as Cost of Control or Goodwill.