subsidiary

Examples of subsidiary in the following topics:

• Reporting for a Combined Entity

  • The ownership of more than 50% of voting stock creates a subsidiary.
  • The financial statements of the parent and subsidiary are consolidated for reporting purposes.
  • The subsidiary can be a company, corporation, or limited liability company.
  • An operating subsidiary is a business term frequently used within the United States's railroad industry.
  • Consolidated financial statements show the parent and the subsidiary as one single entity.

• Types of Investments: Dependence on Ownership Share

  • Types of investments include: 20% to 50% (as an asset), greater than 50% (as a subsidiary), and less than 20% (as an investment position).
  • The ownership of more than 50% of voting stock creates a subsidiary.
  • A subsidiary company, subsidiary, or daughter company is a company that is completely or partly owned and partly or wholly controlled by another company that owns more than half of the subsidiary's stock.
  • The subsidiary can be a company, corporation, or limited liability company.
  • An operating subsidiary is a business term frequently used within the United States railroad industry.

• Being Aware of Off-Balance-Sheet Financing

  • An example of off-balance-sheet financing is an unconsolidated subsidiary.
  • A parent company may not be required to consolidate a subsidiary into its financial statements for reporting purposes; however the parent company may be obligated to pay the unconsolidated subsidiaries liabilities.

• Financial Statement Notes

  • In consolidated financial statements, all subsidiaries are listed as well as the amount of ownership (controlling interest) that the parent company has in the subsidiaries.

• Reporting Inventories

  • It maintains a separate account in the subsidiary ledger for each good in stock, and the account is updated each time a quantity is added or taken out.

• Assessing Control

  • ., through subsidiaries), 20% or more of the voting power of the investee, it is presumed that the investor has significant influence, unless it can be clearly demonstrated that this is not the case.
  • Conversely, if the investor holds, directly or indirectly (e.g., through subsidiaries), less than 20% of the voting power of the investee, it is presumed that the investor does not have significant influence, unless such influence can be clearly demonstrated.
  • An investor shall discontinue the use of the equity method from the date when it ceases to have significant influence over an associate and shall account for the investment in accordance with IAS 39 from that date, provided the associate does not become a subsidiary or a joint venture as defined in IAS 31.

• The Disclosure Process

  • The 10-K includes information such as company history, organizational structure, executive compensation, equity, subsidiaries, and audited financial statements, among other information.
  • This describes the business of the company: who and what the company does, what subsidiaries it owns, and what markets it operates in.
  • This section contains financial data showing consolidated records for the legal entity as well as subsidiary companies.

• Valuing Accounts Receivable

  • Accounts receivable is a control account that must have the same balance as the combined balance of every individual account in the accounts receivable subsidiary ledger.

• Accounting Methodologies: Amortized Cost, Fair Value, and Equity

  • In the investor's income statement, the proportional share of the investee's net income or net loss is reported as a single-line item.The ownership of more than 50% of voting stock creates a subsidiary.

• Reporting Irregular Items