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Chapter 13
1.6 Accounting for sub-subsidiaries in a vertical group:
indirect holding adjustment (IHA)
Who purchases the sub-sub? Subsidiary
Who owns the subsidiary? Parent and NCI of S
The IHA adjusts for the amount contributed in purchasing the sub-
sub by the NCI of S.
On preparation of a CSOFP including a sub-sub, goodwill and NCI will need to
be calculated.
Both of these calculations will be affected by the IHA.
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