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Parent and subsidiary relationship for strata and company as unit owners

Discussion in 'Accounting, Tax & Legal' started by rebeccagoh2005, 30th Oct, 2008.

  1. rebeccagoh2005

    rebeccagoh2005 New Member

    Joined:
    30th Oct, 2008
    Posts:
    1
    Location:
    Sydney
    Hi All,

    I have been asked this question from my friend and would appreciate
    any insight or information from the forum:


    A company, say a college that offer bridging education purchased
    7 out of 8 apartments in a building, the apartments will then
    lease to tenants, their students.

    Since the college owned 7 out of 8 units then the strata
    management that will services the apartments will automatically
    be decided by the college that represent majority owner (7 out
    of 8).

    The strata normally will prepare financial reports and whether
    audited or not will be decided by the owner/company.


    Question:

    1. Does strata management and the college relationship can be
    considered as parent and subsidiary relationship?


    2. Does the college need to consolidate the strata financial
    report?


    3. The basis/regulations/accounting standards for the above
    answer
     
  2. jrc

    jrc Active Member

    Joined:
    3rd May, 2007
    Posts:
    32
    Location:
    Western, NSW
    Try AASB 127 and the definition of subsidiary