Question
A crucial part of management accounting is providing funding from one company in a consolidated group to another. How can a parent move funds from
A crucial part of management accounting is providing funding from one company in a consolidated group to another. How can a parent move funds from a parent to itself. There are many ways this is accomplished. Pick one and write about it in detail.
Here are some things to be considered:
1. Suppose the subsidiary is not 100% owned. Could this impact the method used to move funds from one company to another?
2. What are some of the tax considerations involved?
3. What are some of the legal issues involved in moving cash from a subsidiary to the parent?
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Principles of Information Systems
Authors: Ralph M. Stair, George W. Reynolds
9th edition
978-1337097536, 1337097535, 978-1337515634, 1337515639, 978-0324665284
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