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Rakhi Vasavada
Rakhi Vasavada , Financial and Legal Consultant
Category: Finance
Satisfied Customers: 4418
Experience:  Graduated in law with Emphasis on Finance and have have been working in financial sector for over 12 Years
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If a US Inc. in Delaware owns a foreign IT consulting firm

Resolved Question:

If a US Inc. in Delaware owns a foreign IT consulting firm owns as a foreign production LLC entity has IT contractors. What kind of consolidation needs to be done for accounting purposes? Are there guidelines / rules about this? The foreigh production LLC does only gets revenue from the US Inc. in Delaware.
Submitted: 2 years ago.
Category: Finance
Expert:  Rakhi Vasavada replied 2 years ago.

Rakhi Vasavada :

Dear Friend,

Hello and welcome. Thank you for providing us opportunity to help you.

Rakhi Vasavada :

Tell me, does that foreign production house derives income from ONLY the delaware entity or from multiple sources ?

Rakhi Vasavada :

Are you there ? Do you read my response ?

Tell me, does that foreign production house derives income from ONLY the delaware entity or from multiple sources ?

Rakhi Vasavada :

Let me answer you based on presumption that the foreign production house that you are referring to is getting revenues from only ONE source, i.e. the Delaware entity.

If that is the case, I think the best for of consolidation would be -- to consolidate the accounts on P&L and Balance Sheet on accrual basis. If this is what you have thought of, then this is perfectly correct and you can certainly do this. In fact, this is the only possible solution to your query.

Rakhi Vasavada :

Let me know if this helps.. You may revert back with a reply if you need more assistance or kindly leave a positive rating.

Rakhi Vasavada :


Warm Regards,

Customer: replied 2 years ago.

Thank you for your answer, it's as I thought. But in more detail, are there specific rules about in what detail we have to go in the accounts?

Expert:  Rakhi Vasavada replied 2 years ago.
Dear Friend,

Hello and welcome. Not any specific rules as such. The following is a very good reference that explains broad stands for accounting consolidation.

www.crmpolicygroup.org/docs/CRMPG-III-Sec-II.pdf‎


Alternatively, you can download file HERE.

Let me know if this helps.. You may revert back with a reply if you need more assistance or kindly leave a positive rating.

 

Warm Regards,


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