Question

which exchange rate will be considered for conversion of share capital of subsidiary company
opening rate
closing rate
average rate
rate of which date share acquired (actual)
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Answer 1

The rate will be the rate of which date share acquired (actual)

• If a firm owns more than half of the nominal value of another profitable business's equity share capital, that firm is typically considered a principal subsidiary of the initial named firm.

• The corporation modifies specific composition of share capital whenever there is subdivision by subtly altering entire shares issued initially and carefully lowering the par value, accordingly.

• When converting the share capital of a subsidiary firm, the effective rate at which the date share was bought. the original price is adequately taken into account.

Answer 2

Explanation:

rate of which date share aquired (actual)

is the correct answer