Question

Taxation provision made by the subsidiary company will appear in consolidated balance sheet as an item of

• A. current liability
• B. revenue profit
• C. capital profit
• D. non current liabilty

Answer 1

Answer:

A. current liability

• Taxation provision made by the subsidiary company will appear in the consolidated balance sheet as an item of Current liability.
• Revenue Profit- From the perspective of the subsidiary company, the profit earned by the subsidiary company after acquiring control interest in the sub-subsidiary company is called revenue profit. This happens when a subsidiary company owns a sub-subsidiary company before acquiring control interest by the holding company present in the subsidiary company.
• Minority Interest- It is less than 50 percent interest or ownership of a firm or enterprise or organization. Mostly it is held by another organization or an investor.