IFRS 10 - Consolidation

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ibrahim.ferozi8
Posts: 2
Joined: 16 Sep 2020, 13:44

IFRS 10 - Consolidation

Post by ibrahim.ferozi8 »

Our company is owned by family members, There are eight (8) siblings in a family out of five (5) of them owns Company A and are equally partners in the said company A, The family of eight (8) inherited 39.19% stake in company B, which was owned by father. Company A shareholders five (5) have inherited 27% and other 3 siblings got 12.9% in there personal names.

1. The question is our company owners (5 siblings) ready to transfer there stake 27% from personal name to company A or set-up a subsidiary A1 under company A to transfer there stake 27% in company A1. kindly give your feedback on this scenario or give your valuable input.

2. Another question is that, our shareholder's wanted to reflect 39.19% stake of B in company A or Company A1 to boost there net worth, as i understand that remaining 3 siblings are not shareholder in our company A so there stake which is 12.9% will be treated as NCI. i would appreciate to give you valuable feedback and right solution to overcome this situation.
JRSB
Trusted Expert
Posts: 1308
Joined: 01 Mar 2020, 01:10
Location: UK

Re: IFRS 10 - Consolidation

Post by JRSB »

Not sure what the IFRS question is, although there are some structuring issues to consider.
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