%3Cp%20class%3D%22c1%22%3EPretend%0Ayour%20client%26nbsp%3Bis%26nbsp%3Bthe%26nbs

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%3Cp%20class%3D%22c1%22%3EPretend%0Ayour%20client%26nbsp%3Bis%26nbsp%3Bthe%26nbsp%3Bowner%26nbsp%3Bof%26nbsp%3Ba%26nbsp%3Bprivately%26nbsp%3Bheld%26nbsp%3Bmanufacturing%26nbsp%3Bcompany%26nbsp%3Bwith%26nbsp%3Btwo%26nbsp%3Boperational%26nbsp%3Bsubsidiaries.%26nbsp%3B%3C%2Fp%3E%0A%3Cp%20class%3D%22c1%22%3E%0AYour%26nbsp%3Bclient%26nbsp%3Bwants%26nbsp%3Bto%26nbsp%3Bconsider%26nbsp%3Bexpanding%26nbsp%3Bhis%26nbsp%3Binvestment%26nbsp%3Bin%26nbsp%3BSubsidiary%26nbsp%3B1%2C%26nbsp%3Band%26nbsp%3Bhe%26nbsp%3Bis%26nbsp%3Bwilling%26nbsp%3Bto%26nbsp%3Bconsider%26nbsp%3Bpurchasing%26nbsp%3Badditional%26nbsp%3Bshares%26nbsp%3Bto%26nbsp%3Bexpand%26nbsp%3Bhis%26nbsp%3Binfluence.%26nbsp%3B%3C%2Fp%3E%0A%3Cp%20class%3D%22c1%22%3E%0AYour%26nbsp%3Bclient%26nbsp%3Bis%26nbsp%3Balso%26nbsp%3Bconsidering%26nbsp%3Breducing%26nbsp%3Bor%26nbsp%3Beliminating%26nbsp%3Bhis%26nbsp%3Binvestment%26nbsp%3Bin%26nbsp%3BSubsidiary%26nbsp%3B2.%26nbsp%3B%3C%2Fp%3E%0A%3Cp%20class%3D%22c1%22%3E%0APlease%26nbsp%3Brespond%26nbsp%3Bto%26nbsp%3B%3Cem%3Eall%26nbsp%3B%3C%2Fem%3Eof%26nbsp%3Bthe%26nbsp%3Bfollowing%26nbsp%3Bprompts%26nbsp%3Bin%26nbsp%3Bthe%26nbsp%3Bclass%26nbsp%3Bdiscussion%26nbsp%3Bsection%26nbsp%3Bof%26nbsp%3Byour%26nbsp%3Bonline%26nbsp%3Bcourse%3A%26nbsp%3B%3C%2Fp%3E%0A%3Cp%20class%3D%22c1%22%3E%0AYour%26nbsp%3Bclient%26nbsp%3Bhas%26nbsp%3Basked%26nbsp%3Byou%26nbsp%3Bto%26nbsp%3Bprepare%26nbsp%3Ba%26nbsp%3Bsummary%26nbsp%3Bof%26nbsp%3Bthe%26nbsp%3Baccounting%26nbsp%3Bissues%26nbsp%3Bhe%26nbsp%3Bshould%26nbsp%3Bconsider%26nbsp%3Bin%26nbsp%3Bboth%26nbsp%3Bthe%26nbsp%3Bexpansion%26nbsp%3Bof%26nbsp%3Bhis%26nbsp%3Binvestment%26nbsp%3Bin%26nbsp%3BSubsidiary%26nbsp%3B1%26nbsp%3Band%26nbsp%3Bthe%26nbsp%3Breduction%26nbsp%3Bof%26nbsp%3Bhis%26nbsp%3Binvestment%26nbsp%3Bin%26nbsp%3BSubsidiary%26nbsp%3B2.%26nbsp%3B%3C%2Fp%3E%0A%3Cp%20class%3D%22c1%22%3E%0ABegin%26nbsp%3Ba%26nbsp%3Bdiscussion%26nbsp%3Bwith%26nbsp%3Byour%26nbsp%3Bcolleagues%26nbsp%3Babout%26nbsp%3Bthe%26nbsp%3Bvarious%26nbsp%3Baccounting%26nbsp%3Bissues%26nbsp%3Bthat%26nbsp%3Bmust%26nbsp%3Bbe%26nbsp%3Bconsidered.%26nbsp%3B%3C%2Fp%3E%0A%3Cul%3E%0A%3Cli%20class%3D%22c2%22%3E%0ARank%26nbsp%3Bthe%26nbsp%3Bimportance%26nbsp%3Bof%26nbsp%3Beach%26nbsp%3Bissue%26nbsp%3Bfor%26nbsp%3Byour%26nbsp%3Bclient%26nbsp%3Band%26nbsp%3Bdiscuss%26nbsp%3Bwhether%26nbsp%3Bthe%26nbsp%3Bissues%26nbsp%3Bshould%26nbsp%3Bbe%26nbsp%3Bconsidered%26nbsp%3Bseparately%26nbsp%3Bor%26nbsp%3Bas%26nbsp%3Bpart%26nbsp%3Bof%26nbsp%3Bthe%26nbsp%3Blarger%26nbsp%3Bconversation.%26nbsp%3B%3C%2Fli%3E%0A%3Cli%20class%3D%22c2%22%3E%0ARaise%26nbsp%3Bany%26nbsp%3Btiming%26nbsp%3Bissues%26nbsp%3Bthat%26nbsp%3Bmust%26nbsp%3Bbe%26nbsp%3Bexamined.%26nbsp%3BDebate%26nbsp%3Bthe%26nbsp%3Bmost%26nbsp%3Beffective%26nbsp%3Bway%26nbsp%3Bto%26nbsp%3Badvise%26nbsp%3Byour%26nbsp%3Bclient.%3C%2Fli%3E%0A%3C%2Ful%3E%0A%3Cdiv%20class%3D%22c4%22%3E%0A%3Cdiv%20id%3D%22MathJax_MSIE_Frame%22%20class%3D%22c3%22%3E%3Cbr%20%2F%3E%3C%2Fdiv%3E%0A%3C%2Fdiv%3E%0A

Explanation / Answer

Here we assume that, pretend your clients own 100% stake in both of its subsidiaries.
As 100% stake in its subsidiaries are owned by the Pretend your clients, we may say that any
decision with respect to the subsidiary solely depend on the parent company. Before going for
expansion in Subsidiary 1 and reduction in Subsidiary 2, your client should look at the assets and
liabilities composition in each of the subsidiaries and should understand how the assets of each
of these subsidiaries are funded. It also needed to be ensured that, where these subsidiaries are
located at I.e. In which country and need to be followed the country guidelines in this regard
when there is a subsidiary expansion or reduction program.

For example, there are countries in
which, when any company has a subsidiary and if the company activities are reduced and there is
impact on the employment or substantial impact on the environment etc, the company has to get
approval from the

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