Parkson Holdings Berhad (Malaysia) is a holding company for Parkson Retail Asia Ltd (Singapore) and Parkson Retail Group Ltd (Hong Kong). The Malaysian entity has some of its own retail/financing business activities, but generally it derives all of its revenue/income from the two other listed entities in HK and SG.
Now, Parkson Bhd has about a 54% stake in PRGL and a 68% stake in PRAL.
My question is very simple - in the consolidated financial statement with regards to the balance sheet, if PRGL has an asset of RM100mil (after currency conversion) is it listed as RM54mil or RM100mil on the balance sheet of Parkson Bhd? Likewise, what about the liability?
If the asset of the subsidiaries is listed at full value rather than based on the proportion of ownership, will this not distort financial ratios/valuations?
Thanks!
Submitted April 23, 2017 at 10:58AM by learner1314 http://ift.tt/2oidP1C
