Indirect Holdings – Akuntansi Keuangan Lanjutan II

Indirect and Mutual Holdings :
Objektives

  • Prepare consolidated statements when the parent company controls trough indirect holdings.
  • Apply consolidation procedures of indirect holdings to the special case of  mutual holdings.

akuntansi-dasar

Indirect Holdings

The indirect holding system (also multi-tiered holding system) is a system of securities clearance, settlement and ownership system where ownership information is held electronically as a book entry. It consists of one or more tiers of intermediaries between issuer and investor.

Types of Indirect

  • Father-Son-Grandson

IMG20180420052909[1]

 

 

 

 

 

Parent owns 80% of A, and through A, 60% of B (80% x 75%).

Equity Method for Father-Son-Grandson Holdings

  1. Son applies equity method for Investment in Grandson.
  2. Father applies equity method for Investment in Son.
  3. Controlling interest share of consolidated income includes :
    – Share for direct holding of son.
    – Share for indirect holding of grandson (by father through son).
  • Connecting Affiliates

IMG20180420055008[1]

Parent owns 80% of A, 25% of B, and through A an additional 32% of B (80% x 40%). Parent owns a total of 57% of B.

Indirect Holdings with Connecting Affiliates

Indirect holdings with connecting affiliates:

  1. Handle similar to Father-Son-Grandson, but
  2. Father has direct holdings in both Son and Grandson

 

Source :

  1. https://en.wikipedia.org/wiki/Indirect_holding_system
  2. Advanced Accounting, 10th edition by Floyd A. Beams, Robin P. Clement, Joseph H. Anthony, and Suzanne Lowensohn.

 

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