Consolidation

[swati]

Hi all

If an LLP is holding 100% stake in a Company whether consolidation is required?

and

If a company is holding 51% stake in LLP whether consolidation is required?

Hope for reply

Thanks and Regards

Swati

[Mahendra Samdole]

1. If the LLP is holding 100% shares in the Company then LLP becomes holding Company as per definition, but LLP is not required to consolidate its accounts since LLP Act applies to it.

2. Generally, LLP does not fall into the criteria of Subsidiary Company due to the definition. But if the Company is required to consolidate its accounts due to reason it is having any other subsidiary or associate company then depending upon applicable accounting standards, LLPs accounts also get consolidated.  These things are subjective, there are ifs and buts.