How to deal with the investment income of the parent company?

The invested subsidiary has always been profitable, and the investment income of the parent company should be borrowed: investment income, profit and loss of minority shareholders and undistributed profit at the beginning of the year. Because the parent company and the subsidiary company are accounted for according to the equity method, the investment income of the subsidiary company will also be confirmed in the account of the parent company, which will be merged with the company's own profits, and then the surplus reserve will be extracted together with the profits payable.

Consolidated income statement is a statement that reflects the operating results of enterprise groups with the parent company as the core in a specific period. Based on the individual income statements of the parent company and subsidiaries included in the merger scope, it is compiled, and then the internal transactions between the parent company and subsidiaries within the enterprise group that affect the measurement of the total profit of the enterprise group are offset.

In international business, a subsidiary refers to a legal person enterprise of the host country established in accordance with the law with all or part of the shares invested by the parent company.

Symmetry of "subsidiary" A company that owns most of the shares of other companies at home and abroad. Companies controlled by them are called subsidiaries. A subsidiary may also have its own subsidiary, which is the grandson company of the parent company.