0
Modes of formation of a holding company: (There are two ways)
1.)Formation from the bottom:
The operating company provides its industrial or commercial business to one or more subsidiaries. The operating company thus sees its financial power strengthened to the detriment of its managerial power.
2.)Formation from the top: The operating company contributes or transfers shares to a newly created company, whose managerial power will be in a foremost position due to the number of votes that are held. A formation from the top has several advantages serving the group's interest:
- A liberty of choice regarding the country in which to establish the holding company: The dividends coming from subsidiaries based in the European Union may be received almost tax free;
- Easier financial relationships between the group companies via the intermediate holding company.
Wiki User
∙ 13y ago
Add your answer:
Earn +20 pts
Restructuring charges be classified as an operating expense or as a nonoperating expense?
Should restructuring charges be classified as an operating expense or as a nonoperating expense?
Where does interest income appear on an income statement?
Nonoperating Income
Should the JVs be consolidated with the holding companys final accounts?
It depends on where the holding company is located and the shareholding that the holding company has in the JV. At a minimum, the JV should be included in the Holding company's accounts as an investment and consolidated as such.
What is external reconstruction?
It is similar to amalgamation though not exactly the same. In external reconstruction a new company is formed for the purpose of taking over the business of an existing sick company which has incurred huge losses and is facing financial difficulties. Existing company is wound up by selling its business to the newly formed company which is generally similarly named and owned by the same shareholders to a great extent.http://wiki.answers.com/What_is_external_reconstruction_of_companies_in_accounting#ixzz1aT6UQ0cI
What is external reconstruction of companies in accounting?
It is similar to amalgamation though not exactly the same. In external reconstruction a new company is formed for the purpose of taking over the business of an existing sick company which has incurred huge losses and is facing financial difficulties. Existing company is wound up by selling its business to the newly formed company which is generally similarly named and owned by the same shareholders to a great extent.
How was KeySpan Corporation formed?
KeySpan Corporation, the holding company formed by the merger of Brooklyn Union's parent company and Long Island Lighting.
Restructuring charges be classified as an operating expense or as a nonoperating expense?
Should restructuring charges be classified as an operating expense or as a nonoperating expense?
What is another word for nonoperating?
Nonfunctional. Broken.
Is Discontinued operations are considered nonoperating items?
yes
Where does interest income appear on an income statement?
Nonoperating Income
What is the difference between a holding company and a personal holding company?
difference between holding company and personal holding company and the corporation ltd.
Who is downstream holding inc?
A downstream holding company is a holding company established by a mutual insurance company. The mutual insurance company has 100% ownership of the holding company. [Source: Answers.com]
What are the basic features of a holding company?
The characteristics of a holding company in the United States are fairly simple. The company owns the outstanding stock from another company and mitigate risk from other owners. The largest example of this is Berkshire Hathaway, which is owned by billionaire investor Warren Buffett.
When was Garney Holding Company created?
Garney Holding Company was created in 1961.
What is Garney Holding Company's population?
The population of Garney Holding Company is 2,008.
When did W Holding Company end?
W Holding Company ended in 2010.
When was Transport Holding Company created?
Transport Holding Company was created in 1963.
