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Former Member
Oct 08, 2007 at 07:42 AM

BCS - Consolidation of Investment



I am confused about journal in Partial Transfer.

A owns 80% of B.

A owns 10% of Z.

B owns 100% of C.

C owns 90% of Z.

And then C do the partial transfer. It transfer 20% Z to A.

The investment in C has been decrease 20.000 USD and 20%.

And Investment in A has been increase 50.000 USD and 20%.

The Journals are following :

Investment C => Z -20.000

Invesment A => Z +50.000

Gain /Loss -30.000

The question is :

Where should the system post the "Gain/Loss"? is it in Cons unit C or in cons unit A?

Thanks in advance.