harmandeep
May 27, 2009, 09:08 PM
Where does stock investment in subsidiary company located in balance sheet
hamzashakaa
May 28, 2009, 04:31 AM
When you have an investment in subsidiary it means that you are going to perform a consolidated financial statements and you should eliminate the investment in subsidiary with the equity accounts of the subsidiary. Accordingly, investment in subsidiary will be zero in the CONSOLIDATED FINANCIAL STATEMENTS. However, in the books of the parent company (Trial balance) investment in subsidiary should be classified as long-term assets.
nhicolaseliot
Nov 10, 2011, 02:47 AM
Thank you so much for your comment. It really help me as a 2nd year accountant. Though I've not made this blog, I thank you for answering the question of the blog master. We both have problems.