LOSS ON REVALUATION OF ASSETS OF SUBSIDIARY COMPANY :

If there is any loss resulting from the revaluation of the assets of the subsidiary company as on the date of acquisition of shares by the holding company the same must be shared both by the holding company and the minority shareholders in proportion to their respective holdings. The minority shareholders’ share of such loss should be deducted from the amount of Minority interest. But, the holding company’s share of such loss should be treated as capital loss and dealt with like pre-acquisition losses. But, if such loss occurs after the date of acquisition of shares by the holding company the same should be treated as ordinary loss.