Cost of Control

The cost of investment of the parent in each of its subsidiaries and the parent’s share in equity of each subsidiary should be eliminated. For the purpose equity and investment as on the date of each investment is taken.
On the date of investment if the cost of investment to the parent is more than share of equity in that particular subsidiary, the difference is taken as Goodwill in the consolidated statement.
On the date of investment if the cost of investment to the parent is less than share of equity in that particular subsidiary, the difference is taken as Capital Reserve in the consolidated statement.