Mutual holding

1. What is a mutual holding company?

Mutual holding companies (MHCs) are a unique blend of the characteristics of the mutual cooperative institution and a stock company. Mutual holding companies are formed by the reorganization of a mutual institution whereby the mutual forms a stock institution subsidiary which receives all of the assets and liabilities of the mutual institution with the parent holding company retaining all the attributes of mutuality while owning at least majority of the new stock subsidiary. Mutual holding companies were first authorized by the section 107 of the Competitive Equality Banking Act of 1987 (Pub. Law 100-86)

There are two types of mutual holding companies for federal regulatory purposes. One type is a mutual holding company of a state chartered savings bank which is regulated by the Federal Reserve Board as a bank holding company under Section 3(g) of the Bank Holding Company Act of 1956, as amended . The other is a mutual holding company parent of a federal or state chartered savings association which is regulated by the Federal Reserve Board as a Savings and Loan Holding Company under Section 10(o) of the Home Owners Loan Act. Unlike bank holding companies, savings and loan mutual holding companies are chartered by the Federal Reserve Board under section 10(o) (7) of the Home Owners Loan Act. Section 3(g)(2) gives to the Federal Reserve Board comparable powers to charter other mutual holding companies such as MHCs with a commercial bank subsidiary.

MHCs were created to preserve the virtues of mutuality such as mutual governance, community orientation and continuity with the ability to grow incrementally by issuing common stock as Tier-1 capital. MHCs are characterized by:

  • No direct ownership -MHCs have no stockholders or other direct owners. Rather, the depositors of the subsidiary bank, often called “members”, have an inchoate interest in the consolidated net worth of the institution. This interest cannot be bought or sold.
  • Promotion of thrift and home ownership –As the mutual subsidiary was created to promote savings among its members the business focus continues. Some, such as savings and loan associations, are chartered to promote home ownership as well

Sumber:

http://www.americasmutualholdingcompanies.com/faq.html

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Foreign Currency Statements

Foreign currency translation is used to convert the results of a parent company’s foreign subsidiaries to its reporting currency. This is a key part of the financial statementconsolidation process. The steps in this translation process are as follows:

  1. Determine the functional currency of the foreign entity.
  2. Remeasure the financial statements of the foreign entity into the reporting currency of the parent company.
  3. Record gains and losses on the translation of currencies.

Determination of Functional Currency

The financial results and financial position of a company should be measured using its functional currency, which is the currency that the company uses in the majority of its business transactions.

If a foreign business entity operates primarily within one country and is not dependent upon the parent company, its functional currency is the currency of the country in which its operations are located. However, there are other foreign operations that are more closely tied to the operations of the parent company, and whose financing is mostly supplied by the parent or other sources that use the dollar. In this latter case, the functional currency of the foreign operation is probably the dollar. These two examples anchor the ends of a continuum on which you will find foreign operations. Unless an operation is clearly associated with one of the two examples provided, it is likely that you must make a determination of functional currency based on the unique circumstances pertaining to each entity. For example, the functional currency may be difficult to determine if a business conducts an equal amount of business in two different countries.

The functional currency in which a business reports its financial results should rarely change. A shift to a different functional currency should be used only when there is a significant change in the economic facts and circumstances.

Example of Functional Currency Determination

Armadillo Industries has a subsidiary in Australia, to which it ships its body armor products for sale to local police forces. The Australian subsidiary sells these products and then remits payments back to corporate headquarters. Armadillo should consider U.S. dollars to be the functional currency of this subsidiary.

Armadillo also owns a subsidiary in Russia, which manufactures its own body armor for local consumption, accumulates cash reserves, and borrows funds locally. This subsidiary rarely remits funds back to the parent company. In this case, the functional currency should be the Russian ruble.

Translation of Financial Statements

When translating the financial statements of an entity for consolidation purposes into the reporting currency of a business, translate the financial statements using the following rules:

  • Assets and liabilities. Translate using the current exchange rate at the balance sheet date for assets and liabilities.
  • Income statement items. Translate revenues, expenses, gains, and losses using the exchange rate as of the dates when those items were originally recognized.
  • Allocations. Translate all cost and revenue allocations using the exchange rates in effect when those allocations are recorded. Examples of allocations are depreciation and the amortization of deferred revenues.
  • Different balance sheet date. If the foreign entity being consolidated has a different balance sheet date than that of the reporting entity, use the exchange rate in effect as of the foreign entity’s balance sheet date.
  • Profit eliminations. If there are intra-entity profits to be eliminated as part of the consolidation, apply the exchange rate in effect on the dates when the underlying transactions took place.
  • Statement of cash flows. In the statement of cash flows, state all foreign currency cash flows at their reporting currency equivalent using the exchange rates in effect when the cash flows occurred. A weighted average exchange rate may be used for this calculation.

If there are translation adjustments resulting from the implementation of these rules, record the adjustments in the shareholders’ equity section of the parent company’s consolidated balance sheet.

If the process of converting the financial statements of a foreign entity into the reporting currency of the parent company results in a translation adjustment, report the related profit or loss in other comprehensive income.

Sumber:

https://www.accountingtools.com/articles/foreign-currency-translation.html

indirect and mutual holding

INDIRECT HOLDING

  • indirect ownership is an investment that allows investors to control or significantly affect other companies not through direct share ownership, but through their subsidiaries. The indirect holding structure consists of two kinds: the parent-child-grandchild (Parent-Child-Grandchild) structure and the connected affiliate structure (Affinity Bound).

MUTUAL HOLDING

  • Mutual holding is defined as share ownership by an affiliated company. The mutual holding structure is of two forms: the parent stock is owned by a subsidiary and the subsidiary’s shares are owned by another subsidiary

SUMMARY

  • Indirect holding is an investment that allows investors to control or significantly affect other companies not through direct share ownership, but through their subsidiaries. The indirect holding structure consists of two kinds, namely father-son-grandson structure and connected affiliate structure.
  • Mutual holding is a shareholding by an affiliated company. The mutual holding structure is of two forms: the parent stock is owned by a subsidiary and the subsidiary’s shares are owned by another subsidiary.
  • From a consolidated point of view, the parent stock owned by a subsidiary is not included in the outstanding shares. Therefore, in the consolidated financial statements, the shares will be reported as treasury shares and will be deducted from the stockholders’ equity consolidation at their cost value

KEPEMILIKAN LANGSUNG DAN TIDAK LANGSUNG

Pemilikan Tidak Langsung

                Yang dimaksud dengan Pemilikan tidak langsung adalah investasi yang memungkinkan investor untuk mengendalikan atau mempengaruhi secara signifikan perusahaan lain tidak melalui kepemilikan saham langsung, melainkan melalui anak perusahaannya. Struktur indirect holding terdiri dari dua macam yaitu struktur induk-anak-cucu (Induk-Anak-Cucu) dan struktur afiliasi terkoneksi (Afilitas Terikat).

Indirect holding ( struktur anak cucu )

                Perushaan A mempunyai saham B 80%, B mempunyai saham C 90%, maka dari itu secara tidak langsung perushaan A memiliki (80% x 90%) = 72% saham C. Selanjutnya pada  laporan keuangan C harus masuk ke dalam laporan konsolidasi A.  Struktur ini, yang disajian adalah apakah A punya kendali atas B dan B punya kendali atas C, namun pada  akhirnya kepemilikan A atas C secara tidak langsung kurang dari 50%.

                Sebagai Contoh Perushaan A mempunyai  saham perusahaan B 80%, B mempunyai saham perushaan  C 50%, maka secara tidak langsung A memiliki 80% x 50% = 40% saham C. Meskipun kepemilikan secara tidak A atas C kurang dari 50%,  laporan keuangan perushaan C harus masuk ke dalam laporan konsolidasi A.

                Didalam Indirect Holding ini. Berstruktukan induk-anak- cucu, dan Minoritasnya secara umum tidak langsung mempunyai hak Laba bersih perusahaan cucu, ( sebesar % kepemilikan MINORITAS x % kepemilikan anak terhadap cucu x Laba Bersih cucu)

( Mutual Holding)

Hubungan afiliasi akan semakin kompleks jika antar perusahaan induk dan perusahaan anak terjadi saling memiliki saham. Perusahaan induk satu pihak memiliki saham-saham perusahaan anak dan dipihak lain perusahaan anak juga memiliki sebagian saham-saham perusahaan induk. Apabila hal ini terjadi maka laba (rugi) dan atau kenaikan (penurunan) saldo laba yang ditahan selama terjadinya saling  pemilikan dari perusahaan-perusahaan afiliasi akan saling mempengaruhi satu sama lain.

     Satu hal yang perlu diperhatikan di sini ialah bahwa, terhadap saham-saham perusahaan induk yang dimiliki oleh perusahaan anak tidak boleh diperlakukan sebagai modal saham yang beredar di dalam neraca yang dikonsolidasi. Di dalam neraca konsolidasi hak-hak pemilikan saham oleh perusahaan anak atas perusahaan induk harus dieliminasi.Adapun prosedur eliminasinya dilakukan dengan cara yang sama terhadap hak pemilikan perusahaan induk pada perusahaan anak.

  • Hak control yang diperoleh dengan pemilikan tidak secara langsung:
  1. Pemilikan saham-saham perusahaan anak, terjadi sesudah adanya hak control oleh perusahaan induk pada perusahaan sub induk.
  2.  Pemilikan saham-saham perusahaan anak, terjadi sebelum adanya kontrol oleh perusahaan induk pada perusahaan sub induk.
  3. Hak control yang diperoleh dengan adanya hubungan afiliasi di antara perusahaan-perusahaan (anak).

Pemilikan Tidak Langsung

Yang dimaksud dengan Pemilikan tidak langsung adalah investasi yang memungkinkan investor untuk mengendalikan atau mempengaruhi secara signifikan perusahaan lain tidak melalui kepemilikan saham langsung, melainkan melalui anak perusahaannya. Struktur indirect holding terdiri dari dua macam yaitu struktur induk-anak-cucu (Induk-Anak-Cucu) dan struktur afiliasi terkoneksi (Afilitas Terikat).

Indirect holding ( struktur anak cucu )

Perushaan A mempunyai saham B 80%, B mempunyai saham C 90%, maka dari itu secara tidak langsung perushaan A memiliki (80% x 90%) = 72% saham C. Selanjutnya pada  laporan keuangan C harus masuk ke dalam laporan konsolidasi A.  Struktur ini, yang disajian adalah apakah A punya kendali atas B dan B punya kendali atas C, namun pada  akhirnya kepemilikan A atas C secara tidak langsung kurang dari 50%.

Sebagai Contoh Perushaan A mempunyai  saham perusahaan B 80%, B mempunyai saham perushaan  C 50%, maka secara tidak langsung A memiliki 80% x 50% = 40% saham C. Meskipun kepemilikan secara tidak A atas C kurang dari 50%,  laporan keuangan perushaan C harus masuk ke dalam laporan konsolidasi A.

Didalam Indirect Holding ini. Berstruktukan induk-anak- cucu, dan Minoritasnya secara umum tidak langsung mempunyai hak Laba bersih perusahaan cucu, ( sebesar % kepemilikan MINORITAS x % kepemilikan anak terhadap cucu x Laba Bersih cucu)

( Mutual Holding)

Hubungan afiliasi akan semakin kompleks jika antar perusahaan induk dan perusahaan anak terjadi saling memiliki saham. Perusahaan induk satu pihak memiliki saham-saham perusahaan anak dan dipihak lain perusahaan anak juga memiliki sebagian saham-saham perusahaan induk. Apabila hal ini terjadi maka laba (rugi) dan atau kenaikan (penurunan) saldo laba yang ditahan selama terjadinya saling  pemilikan dari perusahaan-perusahaan afiliasi akan saling mempengaruhi satu sama lain.

Satu hal yang perlu diperhatikan di sini ialah bahwa, terhadap saham-saham perusahaan induk yang dimiliki oleh perusahaan anak tidak boleh diperlakukan sebagai modal saham yang beredar di dalam neraca yang dikonsolidasi. Di dalam neraca konsolidasi hak-hak pemilikan saham oleh perusahaan anak atas perusahaan induk harus dieliminasi.Adapun prosedur eliminasinya dilakukan dengan cara yang sama terhadap hak pemilikan perusahaan induk pada perusahaan anak.

  • Hak control yang diperoleh dengan pemilikan tidak secara langsung:
  1. Pemilikan saham-saham perusahaan anak, terjadi sesudah adanya hak control oleh perusahaan induk pada perusahaan sub induk.
  2.  Pemilikan saham-saham perusahaan anak, terjadi sebelum adanya kontrol oleh perusahaan induk pada perusahaan sub induk.
  3. Hak control yang diperoleh dengan adanya hubungan afiliasi di antara perusahaan-perusahaan (anak).

 

Sumber:

http://wawanandi.blogspot.co.id/2014/05/konsolidasi-pemilikan-tidak-langsung.html